Will IRadimed Corporation’s (NASDAQ:IRMD) Earnings Grow Over The Next Few Years?
IRadimed Corporation’s (NASDAQ:IRMD) latest earnings announcement in December 2017 showed that the business experienced a significant headwind with earnings declining by -93.07%. Below is a brief commentary on my key takeaways on how market analysts view IRadimed’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. Check out our latest analysis for IRadimed
Analysts’ expectations for the coming year seems positive, with earnings growth more than doubling. Earnings continue to grow strongly in the next couple of years, finally generating US$8.16M in 2021.
Although it is informative understanding the rate of growth year by year relative to today’s value, it may be more insightful to determine the rate at which the earnings are growing on average every year. The benefit of this approach is that it ignores near term flucuations and accounts for the overarching direction of IRadimed’s earnings trajectory over time, 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 60.04%. This means that, we can presume IRadimed will grow its earnings by 60.04% every year for the next couple of years.
Next Steps:
For IRadimed, I’ve compiled three fundamental factors 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.
Valuation: What is IRMD 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 IRMD is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of IRMD? 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.
