Fluidigm Corporation (NASDAQ:FLDM): What Can We Expect From This High Growth Stock?

The most recent earnings release Fluidigm Corporation’s (NASDAQ:FLDM) announced in December 2017 signalled company earnings became less negative compared to the previous year’s level – great news for investors Below is my commentary, albeit very simple and high-level, on how market analysts view Fluidigm’s earnings growth trajectory over the next couple of 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. Check out our latest analysis for Fluidigm

Analysts’ outlook for the upcoming year seems buoyant, with earnings becoming less negative, reaching -US$52.18M in 2019. Additionally, earnings should continue its upward direction, generating -US$42.56M in 2020, and -US$34.22M in 2021.

NasdaqGS:FLDM Future Profit Feb 16th 18
NasdaqGS:FLDM Future Profit Feb 16th 18

Although it is helpful to be aware of the growth rate each year relative to today’s value, it may be more beneficial to gauge the rate at which the business is rising or falling every year, on average. The advantage of this technique is that it ignores near term flucuations and accounts for the overarching direction of Fluidigm’s earnings trajectory over time, which may be more relevant for long term investors. 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 20.99%. This means that, we can assume Fluidigm will grow its earnings by 20.99% every year for the next few years.

Next Steps:

For Fluidigm, I’ve put together three key factors you should look at: