Analysts Have Made A Financial Statement On BridgeBio Pharma, Inc.'s (NASDAQ:BBIO) Second-Quarter Report
Investors in BridgeBio Pharma, Inc. (NASDAQ:BBIO) had a good week, as its shares rose 2.3% to close at US$83.84 following the release of its second-quarter results. Results overall weren't great; even though revenues of US$244m beat expectations by 11%, statutory losses ballooned to US$0.78 per share, substantially worse than the analysts had expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the most recent consensus for BridgeBio Pharma from 19 analysts is for revenues of US$1.01b in 2026. If met, it would imply a huge 42% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 22% to US$2.75. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$960.7m and losses of US$2.25 per share in 2026. While this year's revenue estimates increased, there was also a regrettable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
Check out our latest analysis for BridgeBio Pharma
There was no major change to the consensus price target of US$108, with growing revenues seemingly enough to offset the concern of growing losses. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values BridgeBio Pharma at US$157 per share, while the most bearish prices it at US$80.00. 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.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting BridgeBio Pharma's growth to accelerate, with the forecast 102% annualised growth to the end of 2026 ranking favourably alongside historical growth of 53% 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 23% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that BridgeBio Pharma is expected to grow much faster than its industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at BridgeBio Pharma. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on BridgeBio Pharma. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for BridgeBio Pharma going out to 2028, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 1 warning sign for BridgeBio Pharma you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.