IMV Inc.'s (TSE:IMV) most recent earnings update in December 2018 indicated that losses became smaller relative to the prior year's level - great news for investors Below, I've presented key growth figures on how market analysts predict IMV'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.
Analysts' expectations for the coming year seems pessimistic, with earnings becoming even more negative, arriving at -CA$29.2m in 2020. Moreover, earnings are expected to fall off in the following year, before bouncing back up again to -CA$25.9m in 2022.
Although it’s informative understanding the growth year by year relative to today’s level, it may be more valuable to estimate the rate at which the earnings are moving on average every year. The benefit of this method is that we can get a bigger picture of the direction of IMV's earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. 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 42%. This means that, we can assume IMV will grow its earnings by 42% every year for the next couple of years.
For IMV, there are three relevant 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.
- Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for IMV's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of IMV? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.