Shareholders might have noticed that Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) filed its yearly result this time last week. The early response was not positive, with shares down 8.3% to US$45.16 in the past week. The results overall were pretty much dead in line with analyst forecasts; revenues were US$77m and statutory losses were US$3.20 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Rhythm Pharmaceuticals

Taking into account the latest results, the current consensus from Rhythm Pharmaceuticals' seven analysts is for revenues of US$132.1m in 2024. This would reflect a substantial 71% increase on its revenue over the past 12 months. Losses are forecast to balloon 24% to US$3.87 per share. Before this latest report, the consensus had been expecting revenues of US$142.4m and US$2.57 per share in losses. While this year's revenue estimates dropped there was also a massive increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The average price target was broadly unchanged at US$56.11, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. 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. The most optimistic Rhythm Pharmaceuticals analyst has a price target of US$70.00 per share, while the most pessimistic values it at US$49.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 71% growth on an annualised basis. That is in line with its 86% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 17% annually. So although Rhythm Pharmaceuticals is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.