Shareholders might have noticed that Prelude Therapeutics Incorporated (NASDAQ:PRLD) filed its first-quarter result this time last week. The early response was not positive, with shares down 7.8% to US$4.48 in the past week. 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. 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 consensus forecast from Prelude Therapeutics' four analysts is for revenues of US$27.3m in 2026. This reflects a huge 63% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 52% to US$0.37. Before this latest report, the consensus had been expecting revenues of US$25.0m and US$0.84 per share in losses. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a very promising decrease in loss per share in particular.

It will come as no surprise to learn thatthe analysts have increased their price target for Prelude Therapeutics 20% to US$8.25on the back of these upgrades. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Prelude Therapeutics, with the most bullish analyst valuing it at US$10.00 and the most bearish at US$6.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Prelude Therapeutics' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Prelude Therapeutics'historical trends, as the 92% annualised revenue growth to the end of 2026 is roughly in line with the 86% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 22% annually. So although Prelude Therapeutics is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Prelude Therapeutics analysts - going out to 2028, and you can see them free on our platform here.

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.