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In December 2018, ImmunoGen, Inc. (NASDAQ:IMGN) released its latest earnings announcement, which confirmed 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 view ImmunoGen'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 this coming year seems relatively unexciting, with earnings continuing to flop around in the negative territory, arriving at -US$163.7m in 2020. Furthermore, earnings are expected to fall further in the following year, before bouncing back up again to -US$170.6m in 2022.
Although it’s helpful to be aware of the growth each year relative to today’s level, it may be more beneficial to evaluate the rate at which the earnings are rising or falling every year, on average. The advantage of this technique is that we can get a better picture of the direction of ImmunoGen's earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To compute this rate, I've appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 11%. This means that, we can anticipate ImmunoGen will grow its earnings by 11% every year for the next few years.
For ImmunoGen, I've put together three key 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 IMGN'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 IMGN? 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 firstname.lastname@example.org. 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.