In December 2017, Novelion Therapeutics Inc (NASDAQ:NVLN) announced its most recent earnings update, which suggested that losses became smaller relative to the prrior year’s level – great news for investors Below, I’ve laid out key growth figures on how market analysts predict Novelion Therapeutics’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 Novelion Therapeutics
Analysts’ expectations for this coming year seems buoyant, with earnings becoming less negative, reaching -US$23.40M in 2019. However, earnings are predicted to fall off in the following year, before bouncing back up again to -US$86.74M in 2021.
While it is helpful to be aware of the growth rate each year relative to today’s value, it may be more valuable estimating the rate at which the business is growing every year, on average. The advantage of this method is that we can get a better picture of the direction of Novelion Therapeutics’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To compute this rate, I put 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 12.43%. This means, we can anticipate Novelion Therapeutics will grow its earnings by 12.43% every year for the next couple of years.
For Novelion Therapeutics, I’ve compiled three fundamental 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 NVLN’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 NVLN? 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.