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Tango Therapeutics, Inc. (NASDAQ:TNGX) missed earnings with its latest first-quarter results, disappointing overly-optimistic forecasters. Revenues came in at US$5.4m, missing analyst expectations by 20%. Statutory losses per share fell slightly short, coming in at US$0.36, 2.4% below what the analysts had predicted. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the recent earnings report, the consensus from seven analysts covering Tango Therapeutics is for revenues of US$28.1m in 2025. This implies a disturbing 31% decline in revenue compared to the last 12 months. Losses are expected to increase slightly, to US$1.29 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$29.1m and losses of US$1.38 per share in 2025. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers fell somewhat.
View our latest analysis for Tango Therapeutics
The consensus price target fell 5.2% to US$10.43, with the dip in revenue estimates clearly souring sentiment, despite the forecast reduction in losses. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Tango Therapeutics, with the most bullish analyst valuing it at US$13.00 and the most bearish at US$8.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Tango Therapeutics shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 39% by the end of 2025. This indicates a significant reduction from annual growth of 18% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 17% annually for the foreseeable future. It's pretty clear that Tango Therapeutics' revenues are expected to perform substantially worse than the wider industry.