How Do Analysts See Corvus Pharmaceuticals Inc (CRVS) Performing Over The Next Few Years?

Corvus Pharmaceuticals Inc’s (NASDAQ:CRVS) latest earnings announcement in September 2017 revealed that losses became smaller relative to the prrior year’s level as a result of recent tailwinds Below is a brief commentary on my key takeaways on how market analysts predict Corvus Pharmaceuticals’s earnings growth trajectory over the next couple of 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 CRVS

Market analysts’ consensus outlook for next year seems pessimistic, with earnings becoming even more negative, arriving at $-77.3M in 2018. Additionally, earnings should fall off in the following year, decreasing to $-97.4M in 2019 and $-107.9M in 2020.

NasdaqGM:CRVS Future Profit Dec 6th 17
NasdaqGM:CRVS Future Profit Dec 6th 17

Even though it’s informative knowing the rate of growth each year relative to today’s level, it may be more valuable gauging the rate at which the business is growing on average every year. The benefit of this technique is that it ignores near term flucuations and accounts for the overarching direction of Corvus Pharmaceuticals’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 6.80%. This means that, we can assume Corvus Pharmaceuticals will grow its earnings by 6.80% every year for the next couple of years.

Next Steps:

For Corvus Pharmaceuticals, I’ve put together three important 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 CRVS’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 CRVS? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!