Athenex Inc (NASDAQ:ATNX): What Does The Future Look Like?

Athenex Inc's (NASDAQ:ATNX) most recent earnings update in September 2017 signalled that losses became smaller relative to the prrior year's level - great news for investors Below is my commentary, albeit very simple and high-level, on how market analysts perceive Athenex's earnings growth outlook over the next couple of 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. See our latest analysis for Athenex

Analysts' outlook for this coming year seems pessimistic, with earnings becoming even more negative, arriving at $-104.2M in 2018. In the following year, earnings should hover around the same level before expanding to $-89.5M in 2020.

While it is useful to be aware of the rate of growth year by year relative to today’s figure, it may be more insightful determining the rate at which the earnings are growing every year, on average. The pro of this method is that we can get a bigger picture of the direction of Athenex's earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To compute this rate, I put 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 18.43%. This means that, we can anticipate Athenex will grow its earnings by 18.43% every year for the next few years.

Next Steps:

For Athenex, there are three key 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 ATNX'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 ATNX? 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.