In This Article:
BerGenBio ASA’s (OB:BGBIO) latest earnings announcement in December 2017 revealed company earnings became less negative compared to the previous year’s level – great news for investors Today I want to provide a brief commentary on how market analysts perceive BerGenBio’s earnings growth outlook 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 BerGenBio
Analysts’ expectations for the coming year seems pessimistic, with earnings becoming even more negative, reaching -ØRE247.33M in 2019. In the following year, earnings should hover around the same level before rising to -ØRE162.23M in 2021.
Even though it’s helpful to be aware of the rate of growth each year relative to today’s level, it may be more valuable evaluating the rate at which the company is growing every year, on average. The pro of this approach is that we can get a better picture of the direction of BerGenBio’s earnings trajectory over the long run, irrespective of near term fluctuations, be more volatile. 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 -4.03%. This means that, we can assume BerGenBio will chip away at a rate of -4.03% every year for the next few years.
Next Steps:
For BerGenBio, I’ve compiled three essential aspects you should further examine:
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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.
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Future Earnings: How does BGBIO’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.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of BGBIO? 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.