As you might know, Kymera Therapeutics, Inc. (NASDAQ:KYMR) last week released its latest full-year, and things did not turn out so great for shareholders. The numbers were weak, with revenues of US$47m coming in 13% short of analyst estimates. Statutory losses were US$2.98 per share, 4.8% larger than what the analysts expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Kymera Therapeutics NasdaqGM:KYMR Earnings and Revenue Growth March 1st 2025

Following the latest results, Kymera Therapeutics' 16 analysts are now forecasting revenues of US$68.0m in 2025. This would be a sizeable 45% improvement in revenue compared to the last 12 months. Per-share losses are supposed to see a sharp uptick, reaching US$3.81. Before this latest report, the consensus had been expecting revenues of US$69.2m and US$3.37 per share in losses. While this year's revenue estimates held steady, there was also a notable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The consensus price target held steady at US$58.37, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Kymera Therapeutics analyst has a price target of US$97.00 per share, while the most pessimistic values it at US$41.00. 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.

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. The analysts are definitely expecting Kymera Therapeutics' growth to accelerate, with the forecast 45% annualised growth to the end of 2025 ranking favourably alongside historical growth of 23% 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 20% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Kymera Therapeutics to grow faster than the wider industry.

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The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Kymera Therapeutics. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$58.37, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Kymera Therapeutics. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Kymera Therapeutics analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk.  We've identified 2 warning signs  with Kymera Therapeutics (at least 1 which is a bit unpleasant)  , and understanding them should be part of your investment process.

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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.

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