The latest earnings announcement Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) released in December 2018 signalled company earnings became less negative compared to the previous year’s level – great news for investors Below is a brief commentary on my key takeaways on how market analysts predict Ekso Bionics Holdings’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.
Market analysts’ prospects for this coming year seems optimistic, with earnings becoming less negative, reaching -US$21.2m in 2020. However, earnings should fall off in the following year, declining to -US$16.0m in 2021 and -US$11.4m in 2022.
Even though it’s informative understanding the growth rate each year relative to today’s level, it may be more beneficial analyzing the rate at which the company is rising or falling on average every year. The benefit of this approach is that we can get a better picture of the direction of Ekso Bionics Holdings’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 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 28%. This means that, we can expect Ekso Bionics Holdings will grow its earnings by 28% every year for the next few years.
For Ekso Bionics Holdings, I’ve put together 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 EKSO’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 EKSO? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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