The latest earnings announcement CTI BioPharma Corp’s (NASDAQ:CTIC) released in December 2017 confirmed company earnings became less negative compared to the previous year’s level as a result of recent tailwinds Investors may find it useful to understand how market analysts predict CTI BioPharma’s earnings growth outlook over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. See our latest analysis for CTI BioPharma
Analysts’ outlook for the upcoming year seems pessimistic, with earnings becoming even more negative, arriving at -US$50.86M in 2019. In addition, earnings are predicted to fall off in the following year, before bouncing back up again to -US$45.27M in 2021.
While it is informative knowing the growth rate year by year relative to today’s level, it may be more valuable determining the rate at which the company is rising or falling on average every year. The pro of this approach is that we can get a better picture of the direction of CTI BioPharma’s earnings trajectory over the long run, irrespective of near term fluctuations, be more volatile. To compute 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 30.07%. This means, we can presume CTI BioPharma will grow its earnings by 30.07% every year for the next couple of years.
For CTI BioPharma, I’ve compiled three key 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.
- Valuation: What is CTIC 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 CTIC is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of CTIC? 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.