In December 2018, Amicus Therapeutics, Inc. (NASDAQ:FOLD) released its latest earnings announcement, which indicated company earnings became less negative compared to the previous year’s level as a result of recent tailwinds Investors may find it useful to understand how market analysts predict Amicus Therapeutics’s earnings growth trajectory 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.
Market analysts’ prospects for this coming year seems optimistic, with earnings becoming less negative, reaching -US$236.8m in 2020. However, earnings are predicted to fall off in the following year, falling to -US$190.1m in 2021 and -US$164.2m in 2022.
While it’s informative knowing the growth each year relative to today’s value, it may be more beneficial gauging the rate at which the business is growing every year, on average. The benefit of this approach is that it ignores near term flucuations and accounts for the overarching direction of Amicus Therapeutics’s earnings trajectory over time, which may be more relevant for long term investors. To compute 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 42%. This means, we can expect Amicus Therapeutics will grow its earnings by 42% every year for the next few years.
For Amicus Therapeutics, I’ve compiled three important factors you should look at:
- 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.
- Valuation: What is FOLD worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether FOLD is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of FOLD? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.