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Orchard Therapeutics plc's (NASDAQ:ORTX) most recent earnings update in December 2018 indicated company earnings became less negative compared to the previous year's level as a result of recent tailwinds Below, I've laid out key numbers on how market analysts predict Orchard Therapeutics's earnings growth trajectory over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
See our latest analysis for Orchard Therapeutics
Analysts' expectations for the upcoming year seems relatively subdued, with earnings continuing to flop around in the negative territory, arriving at -US$249.5m in 2020. However, earnings are predicted to move into an upward trend, generating -US$262.3m in 2021, before plateauing down to -US$243.5m in 2022.
While it is useful to be aware of the growth year by year relative to today’s level, it may be more valuable evaluating the rate at which the earnings are moving on average every year. The pro of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of Orchard Therapeutics's earnings trajectory over time, fluctuate up and down. To calculate 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 28%. This means, we can presume Orchard Therapeutics will grow its earnings by 28% every year for the next few years.
Next Steps:
For Orchard Therapeutics, there are three pertinent factors you should further research:
- 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.
- Future Earnings: How does ORTX'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.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ORTX? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.