The most recent earnings update Corcept Therapeutics Incorporated’s (NASDAQ:CORT) released in December 2018 indicated that the business endured a major headwind with earnings deteriorating by -42%. Below, I’ve presented key growth figures on how market analysts perceive Corcept Therapeutics’s earnings growth outlook 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’ outlook for the coming year seems positive, with earnings expanding by a robust 43%. Earnings are predicted to peak in the following year, reaching US$153m before declining in 2022
While it is useful to be aware of the growth rate year by year relative to today’s figure, it may be more beneficial estimating the rate at which the company is moving on average every year. The advantage of this technique is that it ignores near term flucuations and accounts for the overarching direction of Corcept Therapeutics’s earnings trajectory over time, be more volatile. To compute this rate, I put 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 14%. This means, we can assume Corcept Therapeutics will grow its earnings by 14% every year for the next couple of years.
For Corcept Therapeutics, I’ve put together three fundamental aspects 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 CORT 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 CORT is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of CORT? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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