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In March 2019, Supernus Pharmaceuticals, Inc. (NASDAQ:SUPN) released its earnings update. Generally, analysts seem cautiously optimistic, with earnings expected to grow by 26% in the upcoming year, though this is noticeably lower than the historical 5-year average earnings growth of 58%. By 2020, we can expect Supernus Pharmaceuticals’s bottom line to reach US$139m, a jump from the current trailing-twelve-month of US$111m. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
What can we expect from Supernus Pharmaceuticals in the longer term?
The 8 analysts covering SUPN view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of SUPN's earnings growth over these next few years.
From the current net income level of US$111m and the final forecast of US$245m by 2022, the annual rate of growth for SUPN’s earnings is 17%. EPS reaches $4 in the final year of forecast compared to the current $2.13 EPS today. Margins are currently sitting at 27%, which is expected to expand to 37% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Supernus Pharmaceuticals, there are three fundamental 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.
- Valuation: What is Supernus Pharmaceuticals 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 Supernus Pharmaceuticals is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Supernus Pharmaceuticals? 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.