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Avadel Pharmaceuticals plc (NASDAQ:AVDL): What’s The Analyst Consensus Outlook?

In December 2017, Avadel Pharmaceuticals plc (NASDAQ:AVDL) announced its latest earnings update, which confirmed that the business finally turned profitable after delivering negative earnings on average over the last couple of years. Below, I’ve presented key growth figures on how market analysts predict Avadel Pharmaceuticals’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 Avadel Pharmaceuticals

Analysts’ outlook for this coming year seems pessimistic, with earnings turning into a loss in 2019. Though this loss doesn’t seem to last long as AVDL turns profitable again by 2021 with earnings expected to be -US$44.26M.

NasdaqGM:AVDL Future Profit Apr 17th 18
NasdaqGM:AVDL Future Profit Apr 17th 18

Even though it is informative understanding the growth rate each year relative to today’s figure, it may be more beneficial analyzing the rate at which the company is moving every year, on average. The benefit of this method is that it ignores near term flucuations and accounts for the overarching direction of Avadel Pharmaceuticals’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I’ve inserted 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 38.03%. This means that, we can presume Avadel Pharmaceuticals will grow its earnings by 38.03% every year for the next couple of years.

Next Steps:

For Avadel Pharmaceuticals, I’ve put together three relevant factors you should look at:

  1. 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.

  2. Valuation: What is AVDL 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 AVDL is currently mispriced by the market.

  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of AVDL? 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.

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