Esperion Therapeutics Inc (NASDAQ:ESPR): Are Analysts Optimistic?

Esperion Therapeutics Inc’s (NASDAQ:ESPR): Esperion Therapeutics, Inc., a lipid management company, focuses on developing and commercializing oral therapies for the treatment of patients with elevated low density lipoprotein cholesterol (LDL-C). With the latest financial year loss of -US$166.99m and a trailing-twelve month of -US$172.58m, the US$1.07b market-cap amplifies its loss by moving further away from its breakeven target. As path to profitability is the topic on ESPR’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for ESPR, its year of breakeven and its implied growth rate.

Check out our latest analysis for Esperion Therapeutics

Expectation from Biotechs analysts is ESPR is on the verge of breakeven. They expect the company to post a final loss in -1, before turning a profit of US$0 in . So, ESPR is predicted to breakeven approximately a few months from now. How fast will ESPR have to grow each year in order to reach the breakeven point by ? Working backwards from analyst estimates, it turns out that they expect the company to grow 4.46% year-on-year, on average, which is relatively conservative. If this rate turns out to be too low, ESPR may become profitable faster than analysts expect.

NasdaqGM:ESPR Past Future Earnings June 19th 18
NasdaqGM:ESPR Past Future Earnings June 19th 18

Given this is a high-level overview, I won’t go into details of ESPR’s upcoming projects, though, bear in mind that by and large biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a low or volatile growth rate in the near future is not unusual, especially if the company is currently in an investment period.

Before I wrap up, there’s one aspect worth mentioning. ESPR has managed its capital judiciously, with debt making up 0.28% of equity. This means that ESPR has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on ESPR, so if you are interested in understanding the company at a deeper level, take a look at ESPR’s company page on Simply Wall St. I’ve also compiled a list of relevant aspects you should further research:

  1. Historical Track Record: What has ESPR’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Esperion Therapeutics’s board and the CEO’s back ground.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.