In December 2017, Fluidigm Corporation (NASDAQ:FLDM) released its latest earnings announcement, which confirmed company earnings became less negative compared to the previous year’s level – great news for investors Investors may find it useful to understand how market analysts view Fluidigm’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. See our latest analysis for Fluidigm
Analysts’ outlook for next year seems buoyant, with earnings becoming less negative, generating -US$52.18M in 2019. Moreover, earnings should continue its upward trajectory, generating -US$42.56M in 2020, and -US$34.22M in 2021.
Even though it’s useful to understand the rate of growth year by year relative to today’s level, it may be more beneficial analyzing the rate at which the company is rising or falling every year, on average. The benefit of this approach is that we can get a better picture of the direction of Fluidigm’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. 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 20.99%. This means that, we can anticipate Fluidigm will grow its earnings by 20.99% every year for the next few years.
For Fluidigm, I’ve compiled three relevant factors 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.
- Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for FLDM’s future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of FLDM? 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.