In This Article:
As you might know, Werewolf Therapeutics, Inc. (NASDAQ:HOWL) just kicked off its latest second-quarter results with some very strong numbers. Revenue crushed expectations at US$8.1m, beating expectations by 157%. Werewolf Therapeutics reported a statutory loss of US$0.14 per share, which - although not amazing - was much smaller than the analysts predicted. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for Werewolf Therapeutics
Taking into account the latest results, the four analysts covering Werewolf Therapeutics provided consensus estimates of US$16.6m revenue in 2023, which would reflect a substantial 33% decline over the past 12 months. Per-share losses are supposed to see a sharp uptick, reaching US$1.31. Before this latest report, the consensus had been expecting revenues of US$21.7m and US$1.38 per share in losses. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue forecasts while also reducing the estimated losses the business will incur.
The consensus price target was broadly unchanged at US$11.33, implying that the business is performing roughly in line with expectations, despite adjustments to both revenue and earnings estimates. 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 Werewolf Therapeutics at US$15.00 per share, while the most bearish prices it at US$8.30. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 55% annualised decline to the end of 2023. That is a notable change from historical growth of 498% over the last year. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 15% per year. It's pretty clear that Werewolf Therapeutics' revenues are expected to perform substantially worse than the wider industry.