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Five Prime Therapeutics Inc (NASDAQ:FPRX): Poised For Long-Term Success?

The most recent earnings release Five Prime Therapeutics Inc’s (NASDAQ:FPRX) announced in December 2017 showed that losses became smaller relative to the prrior year’s level – great news for investors Investors may find it useful to understand how market analysts view Five Prime Therapeutics’s earnings growth outlook over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. See our latest analysis for Five Prime Therapeutics

Analysts’ outlook for the upcoming year seems buoyant, with earnings becoming less negative, arriving at -US$131.96M in 2019. In addition, earnings should continue its upward direction, reaching -US$115.09M in 2020, and -US$105.35M in 2021.

NasdaqGS:FPRX Future Profit Apr 3rd 18
NasdaqGS:FPRX Future Profit Apr 3rd 18

Although it’s helpful to understand the rate of growth year by year relative to today’s level, it may be more beneficial gauging the rate at which the company is moving on average every year. The pro of this approach is that we can get a better picture of the direction of Five Prime Therapeutics’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. 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 24.49%. This means, we can expect Five Prime Therapeutics will grow its earnings by 24.49% every year for the next couple of years.

Next Steps:

For Five Prime Therapeutics, I’ve compiled three essential aspects 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. Valuation: What is FPRX 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 FPRX is currently mispriced by the market.

  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of FPRX? 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.

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