Alder Biopharmaceuticals Inc’s (NASDAQ:ALDR) Profit Outlook

Alder Biopharmaceuticals Inc’s (NASDAQ:ALDR): Alder BioPharmaceuticals, Inc. operates as a clinical-stage biopharmaceutical company. The US$899.01M market-cap company announced a latest loss of -US$288.88M on 31 December 2017 for its most recent financial year result. As path to profitability is the topic on ALDR’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for ALDR.

Check out our latest analysis for Alder Biopharmaceuticals

According to the industry analysts covering ALDR, breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of US$8.87M in 2022. So, ALDR is predicted to breakeven approximately 4 years from today. How fast will ALDR have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 35.95% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

NasdaqGM:ALDR Past Future Earnings May 8th 18
NasdaqGM:ALDR Past Future Earnings May 8th 18

Underlying developments driving ALDR’s growth isn’t the focus of this broad overview, but, keep in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing I’d like to point out is that ALDR has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which typically has high debt relative to its equity. ALDR currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of ALDR which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at ALDR, take a look at ALDR’s company page on Simply Wall St. I’ve also put together a list of pertinent factors you should further research:

  1. Valuation: What is ALDR 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 ALDR 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 Alder Biopharmaceuticals’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.