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What Should We Expect From TrovaGene, Inc.’s (NASDAQ:TROV) Earnings Over The Next Few Years?

Simply Wall St

In December 2018, TrovaGene, Inc. (NASDAQ:TROV) announced its most recent earnings update, which suggested that losses became smaller relative to the prior year’s level as a result of recent tailwinds Below, I’ve presented key growth figures on how market analysts view TrovaGene’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.

Check out our latest analysis for TrovaGene

Analysts’ outlook for the upcoming year seems relatively subdued, with earnings continuing to flop around in the negative territory, generating -US$17.9m in 2020. Furthermore, earnings are predicted to fall further in the following year, before bouncing back up again to -US$20.6m in 2022.

NasdaqCM:TROV Past and Future Earnings, March 8th 2019
NasdaqCM:TROV Past and Future Earnings, March 8th 2019

Even though it is useful to understand the growth year by year relative to today’s level, it may be more valuable to analyze the rate at which the business is rising or falling every year, on average. The benefit of this technique is that we can get a better picture of the direction of TrovaGene’s earnings trajectory over the long run, irrespective of near term fluctuations, be more volatile. To compute 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 10%. This means, we can anticipate TrovaGene will grow its earnings by 10% every year for the next couple of years.

Next Steps:

For TrovaGene, I’ve compiled three relevant factors you should further research:

  1. 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.

  2. Future Earnings: How does TROV’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.

  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of TROV? 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 editorial-team@simplywallst.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.