What Should We Expect From Selecta Biosciences Inc’s (NASDAQ:SELB) Earnings In The Next Couple Of Years?

The most recent earnings announcement Selecta Biosciences Inc’s (NASDAQ:SELB) released in December 2017 indicated that losses became smaller relative to the prrior year’s level – great news for investors Investors may find it useful to understand how market analysts perceive Selecta Biosciences’s earnings growth trajectory over the next couple of 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 Selecta Biosciences

Market analysts’ consensus outlook for this coming year seems relatively subdued, with earnings continuing to flop around in the negative territory, reaching -US$64.70M in 2019. Furthermore, earnings are predicted to fall further in the following year, before bouncing back up again to -US$71.91M in 2021.

NasdaqGM:SELB Future Profit Apr 9th 18
NasdaqGM:SELB Future Profit Apr 9th 18

Although it’s useful to be aware of the growth year by year relative to today’s level, it may be more insightful determining the rate at which the company is growing on average every year. The benefit of this approach is that it ignores near term flucuations and accounts for the overarching direction of Selecta Biosciences’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 30.77%. This means that, we can presume Selecta Biosciences will grow its earnings by 30.77% every year for the next couple of years.

Next Steps:

For Selecta Biosciences, I’ve compiled three essential factors 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 SELB’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 SELB? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!