What Are Analysts Saying About The Future Of Dynavax Technologies Corporation’s (NASDAQ:DVAX)?
The latest earnings update Dynavax Technologies Corporation’s (NASDAQ:DVAX) released in December 2017 revealed company earnings became less negative compared to the previous year’s level – great news for investors Investors may find it useful to understand how market analysts perceive Dynavax Technologies’s earnings growth outlook over the next couple of 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. View our latest analysis for Dynavax Technologies
Market analysts’ consensus outlook for next year seems pessimistic, with earnings becoming even more negative, reaching -US$115.89M in 2019. However, earnings should move into an upward trend, arriving at -US$63.16M in 2020, and -US$17.43M in 2021.
While it is informative knowing the rate of growth each year relative to today’s value, it may be more beneficial to gauge the rate at which the business is growing every year, on average. The benefit of this method is that we can get a better picture of the direction of Dynavax Technologies’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 appended 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 54.82%. This means, we can assume Dynavax Technologies will grow its earnings by 54.82% every year for the next few years.
Next Steps:
For Dynavax Technologies, there are three pertinent aspects you should further research:
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.
Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for DVAX’s future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of DVAX? 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.
