What Are Analysts Saying About The Future Of Audentes Therapeutics, Inc.’s (NASDAQ:BOLD)?

The most recent earnings release Audentes Therapeutics, Inc.’s (NASDAQ:BOLD) announced in December 2018 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 perceive Audentes Therapeutics’s earnings growth outlook over the next few years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.

See our latest analysis for Audentes Therapeutics

Market analysts’ consensus outlook for the upcoming year seems pessimistic, with earnings becoming even more negative, reaching -US$165.2m in 2020. However, earnings should move into an upward trend, reaching -US$172.6m in 2021, before plateauing down to -US$101.3m in 2022.

NasdaqGM:BOLD Past and Future Earnings, March 1st 2019
NasdaqGM:BOLD Past and Future Earnings, March 1st 2019

While it is useful to be aware of the growth rate each year relative to today’s level, it may be more valuable evaluating the rate at which the company is moving on average every year. The advantage of this method is that we can get a bigger picture of the direction of Audentes Therapeutics’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To compute this rate, I’ve appended 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 44%. This means, we can assume Audentes Therapeutics will grow its earnings by 44% every year for the next few years.

Next Steps:

For Audentes Therapeutics, I’ve put together three relevant 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 BOLD 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 BOLD is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of BOLD? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.