Kura Oncology, Inc. (NASDAQ:KURA): What’s The Analyst Consensus Outlook?

The most recent earnings update Kura Oncology, Inc.’s (NASDAQ:KURA) released in December 2018 confirmed that losses became smaller relative to the prior year’s level – great news for investors Below is my commentary, albeit very simple and high-level, on how market analysts view Kura Oncology’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.

See our latest analysis for Kura Oncology

Market analysts’ prospects for this coming year seems pessimistic, with earnings becoming even more negative, reaching -US$74.2m in 2020. However, earnings are predicted to move into an upward direction, reaching -US$88.3m in 2021, before plateauing down to -US$78.5m in 2022.

NasdaqGS:KURA Past and Future Earnings, April 16th 2019
NasdaqGS:KURA Past and Future Earnings, April 16th 2019

While it is useful to be aware of the growth year by year relative to today’s value, it may be more beneficial estimating the rate at which the company is moving on average every year. The benefit of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of Kura Oncology’s earnings trajectory over time, fluctuate up and down. To compute this rate, I’ve inserted 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 21%. This means that, we can presume Kura Oncology will grow its earnings by 21% every year for the next few years.

Next Steps:

For Kura Oncology, there are three key factors you should further research:

  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 KURA 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 KURA is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of KURA? 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.