Analysts’ outlook for next year seems pessimistic, with earnings becoming even more negative, arriving at -US$71.93M in 2019. Moreover, earnings are predicted to fall off in the following year, declining to -US$86.49M in 2020 and -US$116.62M in 2021.
While it is useful to be aware of the rate of growth each year relative to today’s value, it may be more beneficial estimating the rate at which the earnings are 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 Adverum Biotechnologies’s earnings trajectory over time, fluctuate up and down. 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 -18.47%. This means, we can presume Adverum Biotechnologies will chip away at a rate of -18.47% every year for the next couple of years.
For Adverum Biotechnologies, I’ve put together three important factors 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 ADVM’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 ADVM? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!