Advertisement
U.S. markets open in 38 minutes
  • S&P Futures

    5,304.25
    -4.00 (-0.08%)
     
  • Dow Futures

    40,147.00
    +3.00 (+0.01%)
     
  • Nasdaq Futures

    18,484.00
    -19.75 (-0.11%)
     
  • Russell 2000 Futures

    2,138.80
    +0.40 (+0.02%)
     
  • Crude Oil

    82.69
    +1.34 (+1.65%)
     
  • Gold

    2,229.10
    +16.40 (+0.74%)
     
  • Silver

    24.68
    -0.07 (-0.29%)
     
  • EUR/USD

    1.0798
    -0.0032 (-0.29%)
     
  • 10-Yr Bond

    4.2240
    +0.0280 (+0.67%)
     
  • Vix

    13.01
    +0.23 (+1.80%)
     
  • GBP/USD

    1.2628
    -0.0010 (-0.08%)
     
  • USD/JPY

    151.2400
    -0.0060 (-0.00%)
     
  • Bitcoin USD

    70,462.38
    +331.60 (+0.47%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,953.04
    +21.06 (+0.27%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

What Should Investors Know About OptiNose Inc’s (NASDAQ:OPTN) Future?

The latest earnings update OptiNose Inc’s (NASDAQ:OPTN) released in December 2017 confirmed difficult times for the company, with earnings reversing into losses as a result of recent headwinds. Below is a brief commentary on my key takeaways on how market analysts predict OptiNose’s earnings growth outlook 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 OptiNose

Market analysts’ consensus outlook for next year seems pessimistic, with earnings becoming even more negative, generating -US$111.26M in 2019. In the following year, earnings are predicted to remain flat before climbing to -US$46.19M in 2021.

NasdaqGS:OPTN Future Profit May 14th 18
NasdaqGS:OPTN Future Profit May 14th 18

Although it’s helpful to be aware of the growth year by year relative to today’s level, it may be more beneficial estimating the rate at which the company is rising or falling every year, on average. The benefit of this technique is that we can get a bigger picture of the direction of OptiNose’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’ve inserted 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 51.65%. This means, we can assume OptiNose will grow its earnings by 51.65% every year for the next few years.

Next Steps:

For OptiNose, I’ve put together three pertinent aspects you should further examine:

  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 OPTN 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 OPTN is currently mispriced by the market.

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

Advertisement