As you might know, Gossamer Bio, Inc. (NASDAQ:GOSS) just kicked off its latest quarterly results with some very strong numbers. 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$9.5m and the statutory loss per share was US$0.14, 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 Gossamer Bio after the latest results.

Check out our latest analysis for Gossamer Bio

Taking into account the latest results, the current consensus, from the eight analysts covering Gossamer Bio, is for revenues of US$18.7m in 2025. This implies a stressful 82% reduction in Gossamer Bio's revenue over the past 12 months. Losses are forecast to balloon 121% to US$0.70 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$18.6m and losses of US$0.72 per share in 2025. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for next year.

The average price target rose 17% to US$6.72, with the analysts signalling that the forecast reduction in losses would be a positive for the stock's valuation. 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 Gossamer Bio, with the most bullish analyst valuing it at US$15.00 and the most bearish at US$0.50 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the 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. We would highlight that revenue is expected to reverse, with a forecast 75% annualised decline to the end of 2025. That is a notable change from historical growth of 104% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 21% annually for the foreseeable future. It's pretty clear that Gossamer Bio's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 in mind, we wouldn't be too quick to come to a conclusion on Gossamer Bio. Long-term earnings power is much more important than next year's profits. We have forecasts for Gossamer Bio going out to 2026, 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 Gossamer Bio 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.