Will Brainstorm Cell Therapeutics Inc's (NASDAQ:BCLI) Earnings Grow In The Years Ahead?

In September 2017, Brainstorm Cell Therapeutics Inc (NASDAQ:BCLI) announced its latest earnings update, which indicated company earnings became less negative compared to the previous year's level - great news for investors Investors may find it useful to understand how market analysts view Brainstorm Cell Therapeutics's earnings growth trajectory over the next few 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 Brainstorm Cell Therapeutics

Analysts' expectations for next year seems pessimistic, with earnings becoming even more negative, arriving at $-16.3M in 2018. Additionally, earnings are expected to fall off and remain stable over the next few years, generating $-20.4M in 2020.

While it’s useful to understand the rate of growth each year relative to today’s level, it may be more beneficial to determine the rate at which the earnings are growing every year, on average. The advantage of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of Brainstorm Cell Therapeutics's earnings trajectory over time, be more volatile. To calculate 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 30.44%. This means, we can expect Brainstorm Cell Therapeutics will grow its earnings by 30.44% every year for the next couple of years.

Next Steps:

For Brainstorm Cell Therapeutics, there are three fundamental aspects you should further research:

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 BCLI 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 BCLI is currently mispriced by the market.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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.