Orphazyme A/S's (CPH:ORPHA) released its most recent earnings update in December 2018, which signalled that losses became smaller relative to the prior year's level - great news for investors Below, I've presented key growth figures on how market analysts predict Orphazyme's earnings growth trajectory 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.
Check out our latest analysis for Orphazyme
Market analysts' prospects for the coming year seems pessimistic, with earnings becoming even more negative, arriving at -ø326.3m in 2020. Additionally, earnings are expected to fall off in the following year, falling to -ø316.5m in 2021 and -ø6.6m in 2022.
Although it is useful to understand the growth year by year relative to today’s figure, it may be more beneficial evaluating the rate at which the company is rising or falling on average every year. The pro of this method is that we can get a better picture of the direction of Orphazyme'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've inserted 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 9.1%. This means that, we can expect Orphazyme will grow its earnings by 9.1% every year for the next few years.
Next Steps:
For Orphazyme, I've put together three key 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 ORPHA'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 ORPHA? 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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