When Can We Expect A Profit From Atossa Genetics Inc (NASDAQ:ATOS)?

Atossa Genetics Inc’s (NASDAQ:ATOS): Atossa Genetics Inc. a clinical-stage pharmaceutical company, focuses on the development and sale of novel therapeutics and delivery methods for the treatment of breast cancer and other breast conditions in the United States. The US$7.60m market-cap posted a loss in its most recent financial year of -US$10.69m and a latest trailing-twelve-month loss of -US$10.86m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is ATOS’s path to profitability – when will it breakeven? In this article, I will touch on the expectations for ATOS’s growth and when analysts expect the company to become profitable.

See our latest analysis for Atossa Genetics

According to the industry analysts covering ATOS, breakeven is near. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$11.73m in 2021. So, ATOS is predicted to breakeven approximately a couple of months from now! How fast will ATOS have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 53.22% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, ATOS may become profitable much later than analysts predict.

NasdaqCM:ATOS Past Future Earnings June 13th 18
NasdaqCM:ATOS Past Future Earnings June 13th 18

I’m not going to go through company-specific developments for ATOS given that this is a high-level summary, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing I’d like to point out is that ATOS has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which usually has a high level of debt relative to its equity. This means that ATOS has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of ATOS to cover in one brief article, but the key fundamentals for the company can all be found in one place – ATOS’s company page on Simply Wall St. I’ve also compiled a list of important aspects you should further examine:

  1. Valuation: What is ATOS worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether ATOS is currently mispriced by the market.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Atossa Genetics’s board and the CEO’s back ground.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.