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Loss-Making Antares Pharma, Inc. (NASDAQ:ATRS) Expected To Breakeven

Simply Wall St

Antares Pharma, Inc.'s (NASDAQ:ATRS): Antares Pharma, Inc. focuses on developing and commercializing self-administered parenteral pharmaceutical products and technologies worldwide. The US$485m market-cap company’s loss lessens since it announced a -US$6.5m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$5.9m, as it approaches breakeven. The most pressing concern for investors is ATRS’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for ATRS.

View our latest analysis for Antares Pharma

ATRS is bordering on breakeven, according to the 5 Medical Equipment analysts. They anticipate the company to incur a final loss in 2019, before generating positive profits of US$37m in 2020. So, ATRS is predicted to breakeven approximately a couple of months from now! In order to meet this breakeven date, I calculated the rate at which ATRS must grow year-on-year. It turns out an average annual growth rate of 54% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

NasdaqCM:ATRS Past and Future Earnings, August 6th 2019

Underlying developments driving ATRS’s growth isn’t the focus of this broad overview, however, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing I would like to bring into light with ATRS is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in ATRS’s case is 59%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of ATRS which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at ATRS, take a look at ATRS’s company page on Simply Wall St. I’ve also compiled a list of essential aspects you should further examine:

  1. Historical Track Record: What has ATRS's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Antares Pharma’s board and the CEO’s back ground.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.