Supernus Pharmaceuticals, Inc. (NASDAQ:SUPN): Poised For Long Term Success?

Based on Supernus Pharmaceuticals, Inc.’s (NASDAQ:SUPN) earnings update in September 2018, it seems that analyst forecasts are fairly optimistic, as a 23% increase in profits is expected in the upcoming year, though this is comparatively lower than the previous 5-year average earnings growth of 68%. Currently with trailing-twelve-month earnings of US$57m, we can expect this to reach US$70m by 2019. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.

Check out our latest analysis for Supernus Pharmaceuticals

What can we expect from Supernus Pharmaceuticals in the longer term?

Longer term expectations from the 9 analysts covering SUPN’s stock is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of SUPN’s earnings growth over these next few years.

NasdaqGM:SUPN Future Profit December 11th 18
NasdaqGM:SUPN Future Profit December 11th 18

This results in an annual growth rate of 32% based on the most recent earnings level of US$57m to the final forecast of US$125m by 2021. This leads to an EPS of $3.85 in the final year of projections relative to the current EPS of $1.13. With a current profit margin of 19%, this movement will result in a margin of 24% by 2021.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Supernus Pharmaceuticals, there are three important aspects you should look at:

  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. Valuation: What is Supernus Pharmaceuticals worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Supernus Pharmaceuticals is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Supernus Pharmaceuticals? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.