AMAG Pharmaceuticals Inc (NASDAQ:AMAG): Are Analysts Bullish?

In September 2017, AMAG Pharmaceuticals Inc (NASDAQ:AMAG) released its latest earnings announcement, which suggested difficult times for the company, with earnings reversing into losses as a result of recent headwinds. Below, I've laid out key numbers on how market analysts predict AMAG Pharmaceuticals's earnings growth outlook over the next couple of 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 AMAG Pharmaceuticals

Market analysts' consensus outlook for the coming year seems pessimistic, with earnings becoming even more negative, reaching $-136.9M in 2018. However, earnings are expected to move into an upward trajectory, reaching $-49.9M in 2019, and $-14.2M in 2020.

Although it is helpful to be aware of the growth rate year by year relative to today’s figure, it may be more valuable evaluating the rate at which the company is rising or falling on average every year. The pro of this technique is that we can get a better picture of the direction of AMAG Pharmaceuticals's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. 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 64.19%. This means that, we can presume AMAG Pharmaceuticals will grow its earnings by 64.19% every year for the next few years.

Next Steps:

For AMAG Pharmaceuticals, there are three essential 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. Valuation: What is AMAG worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AMAG is currently mispriced by the market.

3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of AMAG? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.