Yahoo Finance Analysts Just Made A Major Revision To Their Aadi Bioscience, Inc. (NASDAQ:AADI) Revenue Forecasts
Today is shaping up negative for Aadi Bioscience, Inc. (NASDAQ:AADI) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.
After this downgrade, Aadi Bioscience's three analysts are now forecasting revenues of US$25m in 2024. This would be an okay 4.0% improvement in sales compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$2.53. However, before this estimates update, the consensus had been expecting revenues of US$28m and US$2.49 per share in losses. So there's definitely been a change in sentiment in this update, with the analysts administering a substantial haircut to this year's revenue estimates, while at the same time holding losses per share steady.
View our latest analysis for Aadi Bioscience
The consensus price target fell 5.7% to US$11.00, with the analysts clearly concerned about the weaker revenue outlook and expectation of ongoing losses.
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. It's pretty clear that there is an expectation that Aadi Bioscience's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.4% growth on an annualised basis. This is compared to a historical growth rate of 36% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 18% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Aadi Bioscience.
The Bottom Line
Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given the stark change in sentiment, we'd understand if investors became more cautious on Aadi Bioscience after today.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Aadi Bioscience analysts - going out to 2026, and you can see them free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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