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What Should You Know About Amedica Corporation’s (NASDAQ:AMDA) Growth?

Ajay Mannan

The latest earnings release Amedica Corporation’s (NASDAQ:AMDA) announced in December 2017 confirmed company earnings became less negative compared to the previous year’s level – great news for investors Below, I’ve laid out key numbers on how market analysts view Amedica’s earnings growth outlook over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. View our latest analysis for Amedica

Market analysts’ consensus outlook for the coming year seems relatively subdued, with earnings continuing to flop around in the negative territory, generating -US$9.53M in 2019. Additionally, earnings are predicted to fall further in the following year, falling to -US$11.39M in 2020 and -US$12.07M in 2021.

NasdaqCM:AMDA Future Profit Apr 10th 18

Even though it is informative knowing the growth each year relative to today’s figure, it may be more beneficial determining the rate at which the business is rising or falling every year, on average. The advantage of this method is that we can get a bigger picture of the direction of Amedica’s earnings trajectory over the long run, irrespective of near term fluctuations, 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 -7.95%. This means that, we can assume Amedica will chip away at a rate of -7.95% every year for the next few years.

Next Steps:

For Amedica, there are three essential factors you should look at:

  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. Future Earnings: How does AMDA’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.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of AMDA? 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.