Cytokinetics, Incorporated's (NASDAQ:CYTK) released its most recent earnings update in December 2018, which signalled company earnings became less negative compared to the previous year's level as a result of recent tailwinds Below, I've laid out key growth figures on how market analysts predict Cytokinetics's earnings growth outlook over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Analysts' expectations for this coming year seems relatively unexciting, with earnings continuing to flop around in the negative territory, generating -US$101.8m in 2020. Moreover, earnings should fall further in the following year, before bouncing back up again to -US$114.5m in 2022.
While it is useful to be aware of the growth year by year relative to today’s figure, it may be more beneficial estimating the rate at which the company is growing on average every year. The pro of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of Cytokinetics's earnings trajectory over time, fluctuate up and down. To calculate this rate, I've appended 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 -1.8%. This means, we can expect Cytokinetics will chip away at a rate of -1.8% every year for the next couple of years.
For Cytokinetics, I've compiled three fundamental factors you should further examine:
- 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 CYTK'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 CYTK? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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