Last week saw the newest quarterly earnings release from 2seventy bio, Inc. (NASDAQ:TSVT), an important milestone in the company's journey to build a stronger business. Revenues of US$9.0m missed forecasts by 15%, but 2seventy bio managed to deliver a surprise (statutory) profit, with earnings per share of US$0.45 a decent improvement on the loss that the analysts were predicting. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for 2seventy bio

Taking into account the latest results, the current consensus from 2seventy bio's six analysts is for revenues of US$46.9m in 2024. This would reflect a modest 6.2% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 61% to US$1.20. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$49.4m and losses of US$2.90 per share in 2024. While the revenue estimates fell, sentiment seems to have improved, with the analysts making a very promising decrease in losses per share in particular.

There was no major change to the US$10.75average price target, suggesting that the adjustments to revenue and earnings are not expected to have a long-term impact on the business. 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 2seventy bio at US$25.00 per share, while the most bearish prices it at US$2.00. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the 2seventy bio's past performance and to peers in the same industry. It's pretty clear that there is an expectation that 2seventy bio's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 22% over the past three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 23% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than 2seventy bio.