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The most recent earnings release NanoString Technologies, Inc.'s (NASDAQ:NSTG) announced in December 2018 revealed company earnings became less negative compared to the previous year's level as a result of recent tailwinds Below, I've presented key growth figures on how market analysts view NanoString Technologies's earnings growth outlook over the next few 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.
Market analysts' prospects for this coming year seems relatively subdued, with earnings continuing to flop around in the negative territory, reaching -US$76.0m in 2020. Additionally, earnings are predicted to fall further in the following year, decreasing to -US$74.3m in 2021 and -US$51.8m in 2022.
Even though it’s informative knowing the growth each year relative to today’s value, it may be more valuable to determine the rate at which the company is moving every year, on average. The advantage of this technique is that we can get a bigger picture of the direction of NanoString Technologies'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 put 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 5.0%. This means that, we can presume NanoString Technologies will grow its earnings by 5.0% every year for the next couple of years.
For NanoString Technologies, I've compiled three relevant factors you should further research:
- 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 NSTG'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 NSTG? 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.