The most recent earnings announcement Tonix Pharmaceuticals Holding Corp’s (NASDAQ:TNXP) released in September 2017 revealed company earnings became less negative compared to the previous year’s level as a result of recent tailwinds Below is a brief commentary on my key takeaways on how market analysts predict Tonix Pharmaceuticals Holding’s earnings growth outlook 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. Check out our latest analysis for Tonix Pharmaceuticals Holding
Market analysts’ consensus outlook for the coming year seems optimistic, with earnings becoming less negative, generating $-22.5M in 2019. However, earnings are expected to fall off in the following year, declining to $-25.9M in 2020 and $-36.0M in 2021.
While it’s informative knowing the growth rate each year relative to today’s level, it may be more beneficial to determine the rate at which the business is rising or falling on average every year. The pro of this approach is that we can get a bigger picture of the direction of Tonix Pharmaceuticals Holding’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To compute this rate, I’ve inserted 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 24.47%. This means that, we can assume Tonix Pharmaceuticals Holding will grow its earnings by 24.47% every year for the next few years.
Next Steps:
For Tonix Pharmaceuticals Holding, I’ve put together three essential factors 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. Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for TNXP’s future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of TNXP? 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 pass 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.