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The latest earnings release Quanterix Corporation's (NASDAQ:QTRX) announced in December 2018 showed that losses became smaller relative to the prior year's level - great news for investors Today I want to provide a brief commentary on how market analysts predict Quanterix'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.
Market analysts' consensus outlook for this coming year seems relatively unexciting, with earnings continuing to flop around in the negative territory, reaching -US$33.2m in 2020. Moreover, earnings are expected to fall further in the following year, dwindling to -US$27.3m in 2021 and -US$12.2m in 2022.
Although it is helpful to be aware of the rate of growth each year relative to today’s figure, it may be more insightful gauging the rate at which the company is moving on average every year. The pro of this approach is that we can get a better picture of the direction of Quanterix's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate 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 33%. This means that, we can assume Quanterix will grow its earnings by 33% every year for the next few years.
For Quanterix, there are 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 QTRX'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 QTRX? 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 email@example.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.