CRISPR Therapeutics AG (NASDAQ:CRSP): Earnings Growth Remains Elusive

The most recent earnings update CRISPR Therapeutics AG’s (NASDAQ:CRSP) released in September 2017 confirmed company earnings became less negative compared to the previous year’s level – great news for investors Below, I’ve laid out key growth figures on how market analysts view CRISPR 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 CRISPR Therapeutics

Analysts’ expectations for next year seems pessimistic, with earnings becoming even more negative, generating $-114.0M in 2018. Furthermore, earnings are expected to fall off in the following year, declining to $-125.3M in 2019 and $-153.1M in 2020.

NasdaqGM:CRSP Future Profit Dec 26th 17
NasdaqGM:CRSP Future Profit Dec 26th 17

Although it’s useful to understand the growth rate each year relative to today’s figure, it may be more insightful to evaluate the rate at which the business is rising or falling every year, on average. The pro of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of CRISPR Therapeutics’s earnings trajectory over time, fluctuate up and down. To compute this rate, I put 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 -19.54%. This means that, we can anticipate CRISPR Therapeutics will chip away at a rate of -19.54% every year for the next couple of years.

Next Steps:

For CRISPR Therapeutics, I’ve compiled three fundamental factors 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. Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for CRSP’s future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.

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