What Should You Know About Soleno Therapeutics Inc’s (NASDAQ:SLNO) Earnings Trajectory?

In December 2017, Soleno Therapeutics Inc (NASDAQ:SLNO) announced its latest earnings update, which signalled 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 view Soleno 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 Soleno Therapeutics

Market analysts’ prospects for next year seems relatively unexciting, with earnings continuing to flop around in the negative territory, arriving at -US$12.25M in 2019. Additionally, earnings should fall further in the following year, declining to -US$17.00M in 2020 and -US$19.12M in 2021.

NasdaqCM:SLNO Future Profit Apr 10th 18
NasdaqCM:SLNO Future Profit Apr 10th 18

Even though it is helpful to understand the rate of growth each year relative to today’s value, it may be more insightful determining the rate at which the business is moving on average every year. The pro of this technique is that we can get a better picture of the direction of Soleno Therapeutics’s earnings trajectory over the long run, irrespective of near term fluctuations, be more volatile. To calculate this rate, I’ve appended 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 30.63%. This means, we can expect Soleno Therapeutics will grow its earnings by 30.63% every year for the next few years.

Next Steps:

For Soleno Therapeutics, there are three fundamental factors you should further examine:

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