In This Article:
Novavax Inc’s (NASDAQ:NVAX) released its most recent earnings update in December 2017, which indicated that losses became smaller relative to the prrior year’s level – great news for investors Today I want to provide a brief commentary on how market analysts view Novavax’s earnings growth trajectory over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. View our latest analysis for Novavax
Market analysts’ consensus outlook for the upcoming year seems relatively muted, with earnings continuing to flop around in the negative territory, reaching -US$190.38M in 2019. Moreover, earnings are predicted to fall further in the following year, before bouncing back up again to -US$131.26M in 2021.
Even though it’s informative understanding the growth rate each year relative to today’s level, it may be more valuable to analyze the rate at which the business is growing every year, on average. The advantage of this approach is that it ignores near term flucuations and accounts for the overarching direction of Novavax’s earnings trajectory over time, be more volatile. To compute this rate, I’ve inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 38.14%. This means, we can anticipate Novavax will grow its earnings by 38.14% every year for the next couple of years.
Next Steps:
For Novavax, I’ve compiled three important aspects you should look at:
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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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Valuation: What is NVAX 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 NVAX is currently mispriced by the market.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of NVAX? 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.