TransEnterix Inc (NYSEMKT:TRXC): What Does The Future Look Like?

TransEnterix Inc's (AMEX:TRXC) latest earnings announcement in September 2017 suggested company earnings became less negative compared to the previous year's level as a result of recent tailwinds Below, I've presented key growth figures on how market analysts view TransEnterix's earnings growth trajectory over the next few 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. View our latest analysis for TransEnterix

Analysts' outlook for the coming year seems buoyant, with earnings becoming less negative, arriving at $-59.3M in 2018. In the following year, earnings are expected to remain stable before declining to $-68.2M in 2020.

Although it is useful to understand the growth each year relative to today’s figure, it may be more insightful to estimate the rate at which the company is growing on average every year. The advantage of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of TransEnterix's earnings trajectory over time, fluctuate up and down. To calculate 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 2.06%. This means, we can expect TransEnterix will grow its earnings by 2.06% every year for the next couple of years.

Next Steps:

For TransEnterix, I've compiled three essential aspects you should further examine:

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 TRXC'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 TRXC? 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.