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Will Ritter Pharmaceuticals, Inc.'s (NASDAQ:RTTR) Earnings Grow Over The Next Few Years?

Simply Wall St

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In December 2018, Ritter Pharmaceuticals, Inc. (NASDAQ:RTTR) released its latest earnings announcement, which signalled company earnings became less negative compared to the previous year's level - great news for investors Below, I've laid out key numbers on how market analysts view Ritter Pharmaceuticals's earnings growth outlook over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.

See our latest analysis for Ritter Pharmaceuticals

Market analysts' consensus outlook for the coming year seems relatively unexciting, with earnings continuing to flop around in the negative territory, reaching -US$17.6m in 2020. However, earnings should move into an upward direction, reaching -US$19.5m in 2021, and -US$20.7m in 2022.

NasdaqCM:RTTR Past and Future Earnings, April 8th 2019

While it’s helpful to understand the growth each year relative to today’s figure, it may be more beneficial to analyze the rate at which the earnings are rising or falling on average every year. The advantage of this method is that we can get a better picture of the direction of Ritter Pharmaceuticals's earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. 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 18%. This means that, we can expect Ritter Pharmaceuticals will grow its earnings by 18% every year for the next few years.

Next Steps:

For Ritter Pharmaceuticals, 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 RTTR'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 RTTR? 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.