Aclaris Therapeutics Inc (NASDAQ:ACRS): Immense Growth Potential?
In December 2017, Aclaris Therapeutics Inc (NASDAQ:ACRS) announced its most recent earnings update, which showed company earnings became less negative compared to the previous year’s level – great news for investors Below, I’ve presented key growth figures on how market analysts perceive Aclaris Therapeutics’s earnings growth outlook over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for Aclaris Therapeutics
Analysts’ outlook for the upcoming year seems pessimistic, with earnings becoming even more negative, generating -US$136.25M in 2019. However, earnings should move into an upward trend, reaching -US$123.84M in 2020, and -US$56.44M in 2021.
Although it is useful to be aware of the rate of growth each year relative to today’s level, it may be more valuable determining the rate at which the company is moving on average every year. The pro of this approach is that we can get a better picture of the direction of Aclaris Therapeutics’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I’ve inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 38.29%. This means that, we can expect Aclaris Therapeutics will grow its earnings by 38.29% every year for the next couple of years.
Next Steps:
For Aclaris Therapeutics, I’ve put together three fundamental aspects you should look at:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Future Earnings: How does ACRS’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ACRS? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
