It's been a good week for BeiGene, Ltd. (NASDAQ:ONC) shareholders, because the company has just released its latest yearly results, and the shares gained 6.4% to US$272. Revenues were a bright spot, with US$3.8b in revenue arriving 2.7% ahead of expectations, although statutory earnings didn't fare nearly so well, recording a loss of US$6.12, some 9.5% below consensus predictions. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for BeiGene

Taking into account the latest results, the current consensus from BeiGene's 31 analysts is for revenues of US$4.96b in 2025. This would reflect a sizeable 30% increase on its revenue over the past 12 months. BeiGene is also expected to turn profitable, with statutory earnings of US$1.00 per share. Before this earnings announcement, the analysts had been modelling revenues of US$4.73b and losses of US$0.14 per share in 2025. So we can see there's been a pretty clear upgrade to expectations following the latest results, with a small increase to revenues expected to lead to profitability earlier than previously forecast.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 8.4% to US$309per share. 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 BeiGene at US$376 per share, while the most bearish prices it at US$207. 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 BeiGene shareholders.

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 BeiGene's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 30% growth on an annualised basis. This is compared to a historical growth rate of 44% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 20% annually. Even after the forecast slowdown in growth, it seems obvious that BeiGene is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts now expect BeiGene to become profitable next year, compared to previous expectations that it would report a loss. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for BeiGene going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for BeiGene that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.