What Are Analysts Expecting From Merus NV. (NASDAQ:MRUS) In The Next Couple Of Years?

Simply Wall St June 7, 2018
In December 2017, Merus NV. (NASDAQ:MRUS) announced its most recent earnings update, which confirmed that losses became smaller relative to the prrior year’s level as a result of recent tailwinds Below is my commentary, albeit very simple and high-level, on how market analysts view Merus’s earnings growth trajectory over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for Merus

Market analysts’ prospects for this coming year seems relatively unexciting, with earnings continuing to flop around in the negative territory, reaching -€74.31M in 2019. Furthermore, earnings should fall further in the following year, declining to -€94.99M in 2020 and -€107.02M in 2021.

NasdaqGM:MRUS Future Profit Jun 6th 18
NasdaqGM:MRUS Future Profit Jun 6th 18

While it is helpful to be aware of the growth each year relative to today’s value, it may be more valuable to analyze the rate at which the company is moving on average every year. The benefit of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of Merus’s earnings trajectory over time, fluctuate up and down. To compute this rate, I put 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 -3.98%. This means, we can anticipate Merus will chip away at a rate of -3.98% every year for the next few years.

Next Steps:

For Merus, there are three relevant aspects you should further research:

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