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It's been a good week for Entrada Therapeutics, Inc. (NASDAQ:TRDA) shareholders, because the company has just released its latest first-quarter results, and the shares gained 3.1% to US$12.50. It was a pretty bad result overall, with revenues coming in 68% lower than the analysts predicted. Statutory earnings correspondingly nosedived, with Entrada Therapeutics reporting a loss of US$0.21 per share, where the analysts were expecting a profit. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Entrada Therapeutics after the latest results.
Check out our latest analysis for Entrada Therapeutics
Taking into account the latest results, the most recent consensus for Entrada Therapeutics from three analysts is for revenues of US$112.0m in 2023 which, if met, would be a substantial 343% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 87% to US$0.30. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$101.7m and losses of US$3.58 per share in 2023. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.
There was no major change to the consensus price target of US$21.50, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Entrada Therapeutics at US$25.00 per share, while the most bearish prices it at US$18.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$21.50, with the latest estimates not enough to have an impact on their price targets.