Anthera Pharmaceuticals Inc’s (NASDAQ:ANTH) latest earnings update in December 2017 confirmed that losses became smaller relative to the prrior year’s level – great news for investors Below is a brief commentary on my key takeaways on how market analysts predict Anthera Pharmaceuticals’s earnings growth trajectory 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. See our latest analysis for Anthera Pharmaceuticals
Market analysts’ prospects for this coming year seems pessimistic, with earnings becoming even more negative, generating -US$37.06M in 2019. Furthermore, earnings should fall off in the following year, before bouncing back up again to -US$19.41M in 2021.
While it is informative knowing the growth rate year by year relative to today’s figure, it may be more valuable evaluating the rate at which the earnings are growing on average every year. The benefit of this approach is that we can get a bigger picture of the direction of Anthera Pharmaceuticals’s earnings trajectory over the long run, irrespective of near term fluctuations, be more volatile. To compute this rate, I’ve appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 20.55%. This means, we can presume Anthera Pharmaceuticals will grow its earnings by 20.55% every year for the next couple of years.
For Anthera Pharmaceuticals, I’ve compiled three key factors you should further examine:
- 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 ANTH’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 ANTH? 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.