Intellia Therapeutics Inc (NASDAQ:NTLA): Set To Experience A Decrease In Earnings?

The latest earnings update Intellia Therapeutics Inc’s (NASDAQ:NTLA) released in December 2017 showed company earnings became less negative compared to the previous year’s level as a result of recent tailwinds Below is a brief commentary on my key takeaways on how market analysts view Intellia Therapeutics’s earnings growth outlook 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 Intellia Therapeutics

Analysts’ outlook for the upcoming year seems pessimistic, with earnings becoming even more negative, reaching -US$88.29M in 2019. Moreover, earnings should fall off in the following year, falling to -US$120.88M in 2020 and -US$143.56M in 2021.

NasdaqGM:NTLA Future Profit May 1st 18
NasdaqGM:NTLA Future Profit May 1st 18

While it’s informative understanding the growth each year relative to today’s figure, it may be more insightful evaluating the rate at which the business is rising or falling every year, on average. The advantage of this approach is that we can get a better picture of the direction of Intellia Therapeutics’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To compute this rate, I’ve inserted 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 -15.57%. This means, we can assume Intellia Therapeutics will chip away at a rate of -15.57% every year for the next few years.

Next Steps:

For Intellia Therapeutics, I’ve put together three fundamental 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. Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for NTLA’s future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of NTLA? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!