Aptose Biosciences Inc. (TSE:APS): Set To Experience A Decrease In Earnings?
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Aptose Biosciences Inc.'s (TSE:APS) released its most recent earnings update in December 2018, which showed that losses became smaller relative to the prior year's level - great news for investors Below, I've laid out key numbers on how market analysts perceive Aptose Biosciences's earnings growth trajectory over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Check out our latest analysis for Aptose Biosciences
Analysts' outlook for this coming year seems relatively subdued, with earnings continuing to flop around in the negative territory, reaching -US$29.8m in 2020. However, earnings should move into an upward trajectory, generating -US$41.0m in 2021, before plateauing down to -US$37.9m in 2022.
While it’s useful to understand the growth rate each year relative to today’s figure, it may be more insightful to estimate the rate at which the company is moving on average every year. The pro of this method is that it ignores near term flucuations and accounts for the overarching direction of Aptose Biosciences's earnings trajectory over time, be more volatile. To calculate 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 -11%. This means, we can assume Aptose Biosciences will chip away at a rate of -11% every year for the next couple of years.
Next Steps:
For Aptose Biosciences, 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.
Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for APS'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 APS? 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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