What Are Analysts Saying About Aurinia Pharmaceuticals Inc’s (NASDAQ:AUPH) Earnings Outlook?

Aurinia Pharmaceuticals Inc’s (NASDAQ:AUPH) most recent earnings update in September 2017 indicated company earnings became less negative compared to the previous year’s level – great news for investors Below, I’ve presented key growth figures on how market analysts predict Aurinia Pharmaceuticals’s earnings growth trajectory over the next few 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. View our latest analysis for Aurinia Pharmaceuticals

Analysts’ expectations for the upcoming year seems pessimistic, with earnings becoming even more negative, reaching $-65.3M in 2019. However, earnings should move into an upward trend, arriving at $-48.6M in 2020, and $-18.3M in 2021.

NasdaqGM:AUPH Future Profit Jan 15th 18
NasdaqGM:AUPH Future Profit Jan 15th 18

Even though it’s helpful to understand the rate of growth year by year relative to today’s figure, it may be more beneficial to analyze the rate at which the earnings are growing every year, on average. The benefit of this technique is that we can get a bigger picture of the direction of Aurinia Pharmaceuticals’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve inserted 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 58.72%. This means, we can presume Aurinia Pharmaceuticals will grow its earnings by 58.72% every year for the next couple of years.

Next Steps:

For Aurinia Pharmaceuticals, there are three relevant 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. Valuation: What is AUPH worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AUPH is currently mispriced by the market.

3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of AUPH? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!