In December 2017, Eiger BioPharmaceuticals Inc (NASDAQ:EIGR) announced its most recent earnings update, which showed company earnings became less negative compared to the previous year’s level as a result of recent tailwinds Below, I’ve presented key growth figures on how market analysts predict Eiger BioPharmaceuticals’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. See our latest analysis for Eiger BioPharmaceuticals
Market analysts’ consensus outlook for next year seems relatively subdued, with earnings continuing to flop around in the negative territory, generating -US$45.76M in 2019. Moreover, earnings should fall further in the following year, before bouncing back up again to -US$44.37M in 2021.
Even though it is helpful to understand the growth year by year relative to today’s level, it may be more beneficial to gauge the rate at which the company is moving on average every year. The pro of this method is that it ignores near term flucuations and accounts for the overarching direction of Eiger BioPharmaceuticals’s earnings trajectory over time, fluctuate up and down. 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 17.53%. This means, we can presume Eiger BioPharmaceuticals will grow its earnings by 17.53% every year for the next few years.
For Eiger BioPharmaceuticals, I’ve compiled 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.
- Future Earnings: How does EIGR’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 EIGR? 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.