IDEAYA Biosciences, Inc. (NASDAQ:IDYA) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that IDEAYA Biosciences will make substantially more sales than they'd previously expected.

Following the upgrade, the consensus from eleven analysts covering IDEAYA Biosciences is for revenues of US$13m in 2024, implying a considerable 14% decline in sales compared to the last 12 months. Losses are supposed to balloon 45% to US$2.22 per share. However, before this estimates update, the consensus had been expecting revenues of US$12m and US$2.35 per share in losses. 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.

See our latest analysis for IDEAYA Biosciences

Despite these upgrades, the analysts have not made any major changes to their price target of US$57.00, implying that their latest estimates don't have a long term impact on what they think the stock is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 18% by the end of 2024. This indicates a significant reduction from annual growth of 37% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 18% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - IDEAYA Biosciences is expected to lag the wider industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around IDEAYA Biosciences' prospects. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at IDEAYA Biosciences.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for IDEAYA Biosciences going out to 2026, and you can see them free on our platform here..