Stoke Therapeutics, Inc. (NASDAQ:STOK) just released its latest annual results and things are looking bullish. Results clearly exceeded expectations, with a substantial revenue beat leading to smaller losses in what looks like a definite win for investors. Revenues were US$37m and the statutory loss per share was US$1.65, smaller than the analysts had forecast. 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 Stoke Therapeutics after the latest results.

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Taking into account the latest results, the most recent consensus for Stoke Therapeutics from ten analysts is for revenues of US$68.2m in 2025. If met, it would imply a major 87% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 26% to US$1.21. Before this latest report, the consensus had been expecting revenues of US$53.8m and US$1.82 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

View our latest analysis for Stoke Therapeutics

Despite these upgrades,the analysts have not made any major changes to their price target of US$23.88, implying that their latest estimates don't have a long term impact on what they think the stock is worth. 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. There are some variant perceptions on Stoke Therapeutics, with the most bullish analyst valuing it at US$47.00 and the most bearish at US$15.00 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

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. It's clear from the latest estimates that Stoke Therapeutics' rate of growth is expected to accelerate meaningfully, with the forecast 87% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 66% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 20% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Stoke Therapeutics is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$23.88, with the latest estimates not enough to have an impact on their price targets.

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 Stoke Therapeutics analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 4 warning signs we've spotted with Stoke Therapeutics .

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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.