It's been a good week for TG Therapeutics, Inc. (NASDAQ:TGTX) shareholders, because the company has just released its latest second-quarter results, and the shares gained 5.9% to US$20.04. In addition to beating expectations by 11% with revenues of US$73m, TG Therapeutics delivered a surprise (statutory) profit of US$0.04 per share, a sweet improvement compared to the losses that the analysts 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Taking into account the latest results, the eight analysts covering TG Therapeutics provided consensus estimates of US$331.1m revenue in 2024, which would reflect a small 4.5% decline over the past 12 months. Statutory earnings per share are forecast to plunge 81% to US$0.13 in the same period. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$310.5m and losses of US$0.019 per share in 2024. The analysts have definitely been lifting their expectations, with the company expected to reach profitability next year - sooner than expected - thanks to the small lift in revenue expectations.

It will come as no surprise to learn that the analysts have increased their price target for TG Therapeutics 5.5% to US$33.38on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic TG Therapeutics analyst has a price target of US$49.00 per share, while the most pessimistic values it at US$8.00. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. 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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 8.8% by the end of 2024. This indicates a significant reduction from annual growth of 92% 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 18% annually for the foreseeable future. It's pretty clear that TG Therapeutics' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts now expect TG Therapeutics to become profitable next year, compared to previous expectations that it would report a loss. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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. At Simply Wall St, we have a full range of analyst estimates for TG Therapeutics going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for TG Therapeutics you should know about.

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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.