The most recent earnings release ArQule Inc’s (NASDAQ:ARQL) announced in December 2017 suggested 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 predict ArQule’s earnings growth outlook 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. View our latest analysis for ArQule
Analysts’ outlook for next year seems relatively subdued, with earnings continuing to flop around in the negative territory, arriving at -US$27.26M in 2019. Furthermore, earnings should fall further in the following year, before bouncing back up again to -US$31.33M in 2021.
Even though it is helpful to be aware of the growth rate each year relative to today’s level, it may be more valuable to analyze the rate at which the earnings are growing every year, on average. The benefit of this method is that we can get a bigger picture of the direction of ArQule’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 0.28%. This means that, we can assume ArQule will grow its earnings by 0.28% every year for the next couple of years.
For ArQule, 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.
- Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for ARQL’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 ARQL? 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.