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VistaGen Therapeutics, Inc.'s (NASDAQ:VTGN) most recent earnings announcement in June 2019 showed that losses became smaller relative to the prior year's level - great news for investors Below, I've laid out key growth figures on how market analysts predict VistaGen Therapeutics's earnings growth trajectory over the next few years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
Market analysts' consensus outlook for this coming year seems buoyant, with earnings becoming less negative, generating -US$19.6m in 2020. However, earnings should fall off and remain flat over the next few years, reaching -US$18.9m in 2022.
Although it’s helpful to understand the growth rate each year relative to today’s value, it may be more beneficial analyzing the rate at which the company is growing on average every year. The advantage of this method is that it ignores near term flucuations and accounts for the overarching direction of VistaGen Therapeutics's earnings trajectory over time, fluctuate up and down. To compute this rate, I put 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 49%. This means, we can expect VistaGen Therapeutics will grow its earnings by 49% every year for the next few years.
For VistaGen Therapeutics, there are three fundamental aspects you should further examine:
- 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 VTGN'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 VTGN? 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.