Esperion Therapeutics Inc (NASDAQ:ESPR): Poised For Long-Term Success?

The latest earnings release Esperion Therapeutics Inc’s (NASDAQ:ESPR) announced in December 2017 showed company earnings became less negative compared to the previous year’s level – great news for investors Below is a brief commentary on my key takeaways on how market analysts view Esperion Therapeutics’s earnings growth outlook over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. Check out our latest analysis for Esperion Therapeutics

Market analysts’ consensus outlook for next year seems positive, with earnings becoming less negative, arriving at -US$148.05M in 2019. However, earnings are expected to fall off in the following year, falling to -US$162.51M in 2020 and -US$213.49M in 2021.

NasdaqGM:ESPR Future Profit Mar 20th 18
NasdaqGM:ESPR Future Profit Mar 20th 18

Although it’s useful to understand the growth rate each year relative to today’s level, it may be more insightful to estimate the rate at which the business is moving every year, on average. The pro of this technique is that we can get a better picture of the direction of Esperion Therapeutics’s earnings trajectory over the long run, irrespective of near term fluctuations, be more volatile. To calculate 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 1.41%. This means, we can anticipate Esperion Therapeutics will grow its earnings by 1.41% every year for the next few years.

Next Steps:

For Esperion Therapeutics, there are three relevant aspects you should look at:

  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 ESPR’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 ESPR? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!