GlycoMimetics, Inc.’s (NASDAQ:GLYC) latest earnings announcement in December 2018 indicated that losses became smaller relative to the prior year’s level – great news for investors Below is my commentary, albeit very simple and high-level, on how market analysts view GlycoMimetics’s earnings growth outlook 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 the upcoming year seems relatively unexciting, with earnings continuing to flop around in the negative territory, reaching -US$52.5m in 2020. However, earnings are predicted to move into an upward direction, reaching -US$69.5m in 2021, before plateauing down to -US$62.3m in 2022.
While it is useful to be aware of the rate of growth each year relative to today’s figure, it may be more beneficial analyzing the rate at which the earnings are moving on average every year. The benefit of this method is that we can get a better picture of the direction of GlycoMimetics’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To calculate this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 36%. This means that, we can anticipate GlycoMimetics will grow its earnings by 36% every year for the next couple of years.
For GlycoMimetics, there are three fundamental aspects you should further examine:
- 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 GLYC 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 GLYC is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of GLYC? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.