The latest earnings release MaxCyte Inc’s (LON:MXCT) announced in December 2017 showed that losses became smaller relative to the prrior year’s level – great news for investors Investors may find it useful to understand how market analysts view MaxCyte’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 MaxCyte
Market analysts’ prospects for next year seems pessimistic, with earnings becoming even more negative, generating -US$13.8m in 2019. In the following year, earnings should remain flat before reducing to -US$9.8m in 2021.
While it’s helpful to understand the rate of growth year by year relative to today’s level, it may be more valuable to determine the rate at which the business is rising or falling every year, on average. The advantage of this technique is that we can get a better picture of the direction of MaxCyte’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To compute this rate, I put 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 0.1%. This means that, we can presume MaxCyte will grow its earnings by 0.1% every year for the next couple of years.
Next Steps:
For MaxCyte, there are three pertinent aspects you should further research:
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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 MXCT’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 MXCT? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.