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The most recent earnings announcement Capricor Therapeutics, Inc.'s (NASDAQ:CAPR) released in December 2018 revealed that the business entered the red zone with earnings dropping into the negative territory as a result of recent headwinds. Below, I've presented key growth figures on how market analysts perceive Capricor Therapeutics'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.
Analysts' expectations for next year seems buoyant, with earnings becoming less negative, reaching -US$8.5m in 2020.
Even though it’s useful to understand the growth rate each year relative to today’s figure, it may be more valuable gauging the rate at which the business is rising or falling on average every year. The benefit of this approach is that we can get a bigger picture of the direction of Capricor Therapeutics's earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To compute 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 14%. This means that, we can assume Capricor Therapeutics will grow its earnings by 14% every year for the next couple of years.
For Capricor Therapeutics, I've put together three pertinent aspects 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.
- Future Earnings: How does CAPR'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 CAPR? 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.