What Are Analysts Expecting From Leap Therapeutics Inc (LPTX) Over The Next Few Years?

Leap Therapeutics Inc’s (NASDAQ:LPTX) announced its latest earnings update in September 2017, which revealed that losses became smaller relative to the prrior year’s level – great news for investors Below, I’ve laid out key numbers on how market analysts perceive Leap Therapeutics’s earnings growth trajectory 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. Check out our latest analysis for Leap Therapeutics

Market analysts’ consensus outlook for next year seems pessimistic, with earnings becoming even more negative, reaching $-38M in 2018. Moreover, earnings are expected to fall off in the following year, reducing to $-42M in 2019 and $-54M in 2020.

NasdaqGM:LPTX Future Profit Nov 30th 17
NasdaqGM:LPTX Future Profit Nov 30th 17

Even though it is informative knowing the growth year by year relative to today‚Äôs value, it may be more insightful to evaluate the rate at which the business is rising or falling every year, on average. The benefit of this technique is that it ignores near term flucuations and accounts for the overarching direction of Leap Therapeutics’s earnings trajectory over time, be more volatile. 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 -23.93%. This means, we can anticipate Leap Therapeutics will chip away at a rate of -23.93% every year for the next couple of years.

Next Steps:

For Leap Therapeutics, there are three key 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. Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for LPTX’s future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.

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