Curis Inc (NASDAQ:CRIS): Earnings Expected To Remain Subdued

In December 2017, Curis Inc (NASDAQ:CRIS) released its most recent earnings update. Generally, analyst forecasts appear to be pessimistic, with profits predicted to drop by -9.88% next year. However, this is still an improvement on its past 5-year earnings growth rate of -29.28%, on average. Currently with a profit of -US$53.32M, the consensus growth rate suggests that earnings will drop to -US$48.05M by 2019. Below is a brief commentary on the longer term outlook the market has for Curis. For those keen to understand more about other aspects of the company, you can research its fundamentals here. See our latest analysis for Curis

How will Curis perform in the near future?

Over the next three years, it seems the consensus view of the 4 analysts covering CRIS is skewed towards the negative sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of CRIS’s earnings growth over these next few years.
NasdaqGM:CRIS Future Profit Mar 22nd 18
NasdaqGM:CRIS Future Profit Mar 22nd 18
By 2021, CRIS’s earnings should reach -US$35.19M, from current levels of -US$53.32M, resulting in an annual growth rate of -2.06%. EPS reaches $-0.39 in the final year of forecast compared to the current $-0.36 EPS today. Contraction in the bottom line seems to suggest cost growth exceeding top-line growth of 42.10% in the next three years. With this high cost growth, margins is expected to contract from -538.66% to -206.67% by the end of 2021.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Curis, I’ve put together three important 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 Curis’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 Curis? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!