Agios Pharmaceuticals, Inc. (NASDAQ:AGIO) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

Agios Pharmaceuticals, Inc. (NASDAQ:AGIO) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. Revenues beat expectations coming in atUS$55m, ahead of estimates by 7.3%. Statutory losses were somewhat smaller thanthe analysts expected, coming in at US$1.09 per share. 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 Agios Pharmaceuticals after the latest results.

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Taking into account the latest results, the consensus forecast from Agios Pharmaceuticals' ten analysts is for revenues of US$347.4m in 2027. This reflects a substantial 147% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 40% to US$3.75. Before this latest report, the consensus had been expecting revenues of US$347.4m and US$3.75 per share in losses.

See our latest analysis for Agios Pharmaceuticals

As a result there was no major change to the consensus price target of US$45.88, implying that the business is trading roughly in line with expectations despite ongoing 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. The most optimistic Agios Pharmaceuticals analyst has a price target of US$72.00 per share, while the most pessimistic values it at US$32.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Agios Pharmaceuticals' growth to accelerate, with the forecast 106% annualised growth to the end of 2027 ranking favourably alongside historical growth of 54% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 22% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Agios Pharmaceuticals to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$45.88, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Agios Pharmaceuticals going out to 2028, and you can see them free on our platform here.

Even so, be aware that Agios Pharmaceuticals is showing 1 warning sign in our investment analysis , you should know about...

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