The latest earnings update Mersana Therapeutics, Inc. (NASDAQ:MRSN) released in December 2018 indicated 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 Mersana Therapeutics’s earnings growth trajectory 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.
Analysts’ expectations for the coming year seems buoyant, with earnings becoming less negative, arriving at -US$33.6m in 2020.
While it’s useful to understand the growth year by year relative to today’s level, it may be more valuable analyzing the rate at which the earnings are moving every year, on average. The pro of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of Mersana Therapeutics’s earnings trajectory over time, be more volatile. To compute this rate, I’ve appended 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 -13%. This means that, we can expect Mersana Therapeutics will chip away at a rate of -13% every year for the next couple of years.
For Mersana Therapeutics, I’ve compiled three essential factors you should look at:
- 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 MRSN’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 MRSN? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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