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NewLink Genetics Corporation (NASDAQ:NLNK): Earnings Expected To Remain Subdued

Simply Wall St

NewLink Genetics Corporation's (NASDAQ:NLNK) released its most recent earnings update in December 2018, which indicated that losses became smaller relative to the prior year's level - great news for investors Below, I've presented key growth figures on how market analysts perceive NewLink Genetics's earnings growth outlook 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.

See our latest analysis for NewLink Genetics

Analysts' outlook for next year seems relatively subdued, with earnings continuing to flop around in the negative territory, reaching -US$55.1m in 2020. Moreover, earnings should fall further in the following year, before bouncing back up again to -US$53.7m in 2022.

NasdaqGM:NLNK Past and Future Earnings, April 26th 2019

Although it’s informative understanding the growth rate each year relative to today’s figure, it may be more valuable to gauge the rate at which the company is growing on average every year. The benefit of this method is that it ignores near term flucuations and accounts for the overarching direction of NewLink Genetics's earnings trajectory over time, be more volatile. To compute this rate, I've inserted 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 -1.1%. This means, we can expect NewLink Genetics will chip away at a rate of -1.1% every year for the next few years.

Next Steps:

For NewLink Genetics, I've compiled three pertinent aspects 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 NLNK'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 NLNK? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

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.