In September 2017, CTI BioPharma Corp (NASDAQ:CTIC) released its most recent earnings announcement, which confirmed that losses became smaller relative to the prrior year’s level as a result of recent tailwinds Investors may find it useful to understand how market analysts view CTI BioPharma’s earnings growth trajectory over the next couple of years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for CTI BioPharma
Analysts’ outlook for next year seems pessimistic, with earnings becoming even more negative, reaching $-64.0M in 2019. However, earnings should move into an upward direction, reaching $-49.1M in 2020, and $-21.5M in 2021.
Although it’s informative understanding the rate of growth year by year relative to today’s figure, it may be more valuable to evaluate the rate at which the business is growing on average every year. The benefit of this method is that we can get a better picture of the direction of CTI BioPharma’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 the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 45.20%. This means, we can anticipate CTI BioPharma will grow its earnings by 45.20% every year for the next few years.
For CTI BioPharma, there are three relevant factors you should further research:
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 CTIC’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 CTIC? 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.