Rocket Pharmaceuticals Inc’s (NASDAQ:RCKT) Profit Outlook

Rocket Pharmaceuticals Inc’s (NASDAQ:RCKT): Rocket Pharmaceuticals, Inc., together with its subsidiaries, operates as a multi-platform biotechnology company that focuses on developing gene therapies for rare and devastating pediatric diseases. The company’s loss has recently broadened since it announced a -US$19.58m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$32.24m, moving it further away from breakeven. As path to profitability is the topic on RCKT’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for RCKT, its year of breakeven and its implied growth rate.

See our latest analysis for Rocket Pharmaceuticals

According to the industry analysts covering RCKT, breakeven is near. They anticipate the company to incur a final loss in -1, before generating positive profits of US$0 in . So, RCKT is predicted to breakeven approximately a couple of months from now! In order to meet this breakeven date, I calculated the rate at which RCKT must grow year-on-year. It turns out an average annual growth rate of -22.47% is expected,

NasdaqGM:RCKT Past Future Earnings June 29th 18
NasdaqGM:RCKT Past Future Earnings June 29th 18

Given this is a high-level overview, I won’t go into details of RCKT’s upcoming projects, though, bear in mind that generally a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. So, periods of lower growth in the upcoming years is not out of the ordinary, particularly when a company is in a period of investment.

One thing I’d like to point out is that RCKT has managed its capital judiciously, with debt making up 22.97% of equity. This means that RCKT has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of RCKT which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at RCKT, take a look at RCKT’s company page on Simply Wall St. I’ve also put together a list of key aspects you should further examine:

  1. Historical Track Record: What has RCKT’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Rocket Pharmaceuticals’s board and the CEO’s back ground.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.