What Should Investors Know About Viking Therapeutics Inc’s (NASDAQ:VKTX) Future?
In December 2017, Viking Therapeutics Inc (NASDAQ:VKTX) announced its most recent earnings update, which revealed that losses became smaller relative to the prrior year’s level as a result of recent tailwinds Below is a brief commentary on my key takeaways on how market analysts perceive Viking Therapeutics’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. View our latest analysis for Viking Therapeutics
Analysts’ expectations for the upcoming year seems relatively muted, with earnings continuing to flop around in the negative territory, reaching -US$21.81M in 2019. Moreover, earnings are predicted to fall further in the following year, falling to -US$23.81M in 2020 and -US$26.35M in 2021.
Although it is informative knowing the growth each year relative to today’s level, it may be more insightful evaluating the rate at which the earnings are rising or falling every year, on average. The benefit of this method is that it ignores near term flucuations and accounts for the overarching direction of Viking Therapeutics’s earnings trajectory over time, be more volatile. 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 17.49%. This means, we can presume Viking Therapeutics will grow its earnings by 17.49% every year for the next couple of years.
Next Steps:
For Viking Therapeutics, I’ve compiled three fundamental aspects you should further examine:
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 VKTX’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 VKTX? 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.
