Syndax Pharmaceuticals, Inc.’s (NASDAQ:SNDX) latest earnings update in December 2018 showed company earnings became less negative compared to the previous year’s level as a result of recent tailwinds Investors may find it useful to understand how market analysts view Syndax Pharmaceuticals’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.
Analysts’ outlook for the coming year seems buoyant, with earnings becoming less negative, arriving at -US$60.6m in 2020.
Although it is useful to be aware of the growth rate each year relative to today’s figure, it may be more insightful gauging the rate at which the company is rising or falling on average every year. The pro of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of Syndax Pharmaceuticals’s earnings trajectory over time, be more volatile. To calculate 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 25%. This means, we can assume Syndax Pharmaceuticals will grow its earnings by 25% every year for the next couple of years.
For Syndax Pharmaceuticals, there are three key factors you should look at:
- 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.
- Future Earnings: How does SNDX’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.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SNDX? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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