What Should We Expect From Adverum Biotechnologies Inc’s (NASDAQ:ADVM) Earnings In The Next Couple Of Years?

In December 2017, Adverum Biotechnologies Inc (NASDAQ:ADVM) released its latest earnings announcement, which signalled company earnings became less negative compared to the previous year’s level – great news for investors Below, I’ve laid out key growth figures on how market analysts view Adverum Biotechnologies’s earnings growth trajectory over the next couple of 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 Adverum Biotechnologies

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.

NasdaqGM:ADVM Future Profit May 7th 18
NasdaqGM:ADVM Future Profit May 7th 18

While it is useful to be aware of the rate of growth each year relative to today‚Äôs 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.

Next Steps:

For Adverum Biotechnologies, I’ve put together three important factors 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. 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.
  3. 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!