Entrada Therapeutics, Inc. (NASDAQ:TRDA) just released its latest annual results and things are looking bullish. Entrada Therapeutics delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting US$211m-13% above indicated-andUS$1.68-55% above forecasts- respectively 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.

See our latest analysis for Entrada Therapeutics

After the latest results, the consensus from Entrada Therapeutics' six analysts is for revenues of US$46.7m in 2025, which would reflect a painful 78% decline in revenue compared to the last year of performance. The company is forecast to report a statutory loss of US$3.40 in 2025, a sharp decline from a profit over the last year. Before this earnings announcement, the analysts had been modelling revenues of US$46.7m and losses of US$3.27 per share in 2025. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although revenue forecasts held steady, the consensus also made a moderate increase in its losses per share forecasts.

As a result, there was no major change to the consensus price target of US$25.43, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast 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. There are some variant perceptions on Entrada Therapeutics, with the most bullish analyst valuing it at US$30.00 and the most bearish at US$20.00 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 Entrada Therapeutics shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 78% annualised decline to the end of 2025. That is a notable change from historical growth of 84% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 20% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Entrada Therapeutics is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Entrada Therapeutics' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$25.43, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Entrada Therapeutics analysts - going out to 2027, 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 Entrada Therapeutics you should be aware of.

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