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In December 2018, BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) released its latest earnings announcement, which suggested company earnings became less negative compared to the previous year’s level as a result of recent tailwinds Below, I’ve laid out key numbers on how market analysts view BioCryst Pharmaceuticals’s earnings growth trajectory over the next couple of 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.
Analysts’ outlook for the upcoming year seems pessimistic, with earnings becoming even more negative, generating -US$131.6m in 2020. However, earnings should move into an upward trajectory, arriving at -US$137.3m in 2021, before plateauing down to -US$117.5m in 2022.
Although it is informative understanding the growth rate year by year relative to today’s value, it may be more insightful analyzing the rate at which the earnings are moving every year, on average. The benefit of this technique is that it ignores near term flucuations and accounts for the overarching direction of BioCryst Pharmaceuticals’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 21%. This means, we can assume BioCryst Pharmaceuticals will grow its earnings by 21% every year for the next couple of years.
For BioCryst Pharmaceuticals, I’ve put together three key factors you should look at:
- 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.
- Valuation: What is BCRX 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 BCRX is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of BCRX? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.