What Are Analysts Saying About Alkermes plc’s (NASDAQ:ALKS) Earnings Outlook?
In December 2017, Alkermes plc (NASDAQ:ALKS) released its most recent earnings announcement, which suggested that losses became smaller relative to the prrior year’s level as a result of recent tailwinds Below, I’ve laid out key growth figures on how market analysts view Alkermes’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 Alkermes
Analysts’ expectations for this coming year seems pessimistic, with earnings becoming even more negative, arriving at -US$191.34M in 2019. However, earnings are expected to move into an upward direction, reaching -US$73.91M in 2020, before plateauing down to -US$115.58M in 2021.
While it’s useful to understand the growth year by year relative to today’s value, it may be more beneficial estimating the rate at which the earnings are growing every year, on average. The benefit of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of Alkermes’s earnings trajectory over time, be more volatile. To calculate this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 50.94%. This means that, we can presume Alkermes will grow its earnings by 50.94% every year for the next couple of years.
Next Steps:
For Alkermes, there are three pertinent factors 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.
Valuation: What is ALKS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ALKS is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ALKS? 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.
