ANI Pharmaceuticals Inc’s (NASDAQ:ANIP) released its most recent earnings update in September 2017, which signalled that the company faced a substantial headwind with earnings deteriorating by -74.41%. Below, I’ve laid out key growth figures on how market analysts predict ANI Pharmaceuticals’s earnings growth outlook over the next couple of 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. Check out our latest analysis for ANI Pharmaceuticals
Market analysts’ consensus outlook for the coming year seems optimistic, with earnings growth more than doubling. Earnings continue to grow strongly in the next couple of years, finally reaching $85.1M in 2020.
Although it’s informative understanding the rate of growth year by year relative to today’s level, it may be more beneficial to determine the rate at which the company is rising or falling on average every year. The advantage of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of ANI Pharmaceuticals’s earnings trajectory over time, which may be more relevant for long term investors. To calculate 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 59.99%. This means, we can anticipate ANI Pharmaceuticals will grow its earnings by 59.99% every year for the next couple of years.
Next Steps:
For ANI Pharmaceuticals, there are three relevant 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. Valuation: What is ANIP 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 ANIP is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of ANIP? 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.