The most recent earnings update Titan Pharmaceuticals Inc’s (NASDAQ:TTNP) released in September 2017 signalled that the business finally turned profitable after losses on average over the last few years. Below, I’ve laid out key growth figures on how market analysts view Titan Pharmaceuticals’s earnings growth outlook over the next few years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. View our latest analysis for Titan Pharmaceuticals
Analysts’ outlook for this coming year seems pessimistic, with earnings turning into a loss in 2019. TTNP is expected to continue to be loss making over the next couple of years, arriving at $-9.8M by 2021.
Although it is helpful to understand the growth rate each year relative to today’s figure, it may be more valuable to determine the rate at which the company is rising or falling on average every year. The benefit of this approach is that we can get a bigger picture of the direction of Titan Pharmaceuticals’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. 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 14.03%. This means that, we can anticipate Titan Pharmaceuticals will grow its earnings by 14.03% every year for the next couple of years.
Next Steps:
For Titan Pharmaceuticals, I’ve put together 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 TTNP’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 TTNP? 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.