Carisma Therapeutics, Inc. (NASDAQ:CARM) investors will be delighted, with the company turning in some strong numbers with its latest results. Revenues of US$9.2m beat estimates by a substantial 134% margin. Unfortunately, Carisma Therapeutics also reported a statutory loss of US$0.27 per share, which at least was smaller than the analysts expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the most recent consensus for Carisma Therapeutics from dual analysts is for revenues of US$24.0m in 2024. If met, it would imply a decent 16% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 35% to US$1.14. Before this earnings announcement, the analysts had been modelling revenues of US$15.5m and losses of US$2.13 per share in 2024. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

The consensus price target fell 7.9%, to US$7.00, suggesting that the analysts remain pessimistic on the company, despite the improved earnings and revenue outlook.

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. We would highlight that Carisma Therapeutics' revenue growth is expected to slow, with the forecast 34% annualised growth rate until the end of 2024 being well below the historical 58% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 23% per year. So it's pretty clear that, while Carisma Therapeutics' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 6 warning signs with Carisma Therapeutics (at least 2 which shouldn't be ignored) , 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.