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ERYTECH Pharma S.A.'s (EPA:ERYP) released its most recent earnings update in December 2018, which signalled company earnings became less negative compared to the previous year's level as a result of recent tailwinds Today I want to provide a brief commentary on how market analysts perceive ERYTECH Pharma'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.
Market analysts' consensus outlook for the upcoming year seems pessimistic, with earnings becoming even more negative, generating -€55.8m in 2020. In addition, earnings should fall off in the following year, before bouncing back up again to -€56.8m in 2022.
Although it is informative understanding the rate of growth each year relative to today’s figure, it may be more beneficial estimating the rate at which the business is rising or falling on average every year. The benefit of this technique is that it ignores near term flucuations and accounts for the overarching direction of ERYTECH Pharma's earnings trajectory over time, be more volatile. To calculate 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 3.4%. This means, we can anticipate ERYTECH Pharma will grow its earnings by 3.4% every year for the next couple of years.
For ERYTECH Pharma, I've compiled three pertinent 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.
- Future Earnings: How does ERYP'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 ERYP? 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 email@example.com. 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.