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Will Agenus Inc’s (NASDAQ:AGEN) Earnings Grow Over The Next Few Years?

Joel Foster

Agenus Inc’s (NASDAQ:AGEN) announced its latest earnings update in December 2017, which indicated company earnings became less negative compared to the previous year’s level as a result of recent tailwinds Today I want to provide a brief commentary on how market analysts view Agenus’s earnings growth outlook over the next few 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 Agenus

Market analysts’ prospects for this coming year seems pessimistic, with earnings becoming even more negative, generating -US$160.24M in 2019. However, this positive earnings level of -US$160.24M is expected to remain flat over the next three years.

NasdaqCM:AGEN Future Profit Apr 11th 18

Even though it is informative knowing the rate of growth each year relative to today’s figure, it may be more insightful determining the rate at which the company is growing every year, on average. The advantage of this technique is that we can get a bigger picture of the direction of Agenus’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute 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 -0.12%. This means, we can anticipate Agenus will chip away at a rate of -0.12% every year for the next few years.

Next Steps:

For Agenus, I’ve put together three pertinent factors you should further examine:

  1. 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.
  2. Future Earnings: How does AGEN’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.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of AGEN? 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.