MediciNova Inc (NASDAQ:MNOV): What’s The Analyst Consensus Outlook?
The latest earnings update MediciNova Inc’s (NASDAQ:MNOV) released in September 2017 revealed that losses became smaller relative to the prrior year’s level as a result of recent tailwinds Below is my commentary, albeit very simple and high-level, on how market analysts predict MediciNova’s earnings growth trajectory over the next few 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. Check out our latest analysis for MediciNova
Analysts’ outlook for the upcoming year seems pessimistic, with earnings becoming even more negative, generating $-12.4M in 2019. In addition, earnings are expected to fall off in the following year, before bouncing back up again to $-12.1M in 2021.
Although it is informative knowing the growth rate each year relative to today’s figure, it may be more insightful evaluating the rate at which the business is growing on average every year. The pro of this approach is that we can get a better picture of the direction of MediciNova’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 -1.85%. This means that, we can presume MediciNova will chip away at a rate of -1.85% every year for the next couple of years.
Next Steps:
For MediciNova, I’ve put together three key 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 MNOV’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 MNOV? 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.
