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Esperion Therapeutics, Inc. (NASDAQ:ESPR): Are Analysts Optimistic?

Esperion Therapeutics, Inc. (NASDAQ:ESPR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Esperion Therapeutics, Inc., a pharmaceutical company, develops and commercializes medicines for the treatment of patients with elevated low density lipoprotein cholesterol. With the latest financial year loss of US$269m and a trailing-twelve-month loss of US$235m, the US$330m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Esperion Therapeutics will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Esperion Therapeutics

Consensus from 11 of the American Pharmaceuticals analysts is that Esperion Therapeutics is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$114m in 2024. The company is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 71% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of Esperion Therapeutics' upcoming projects, however, keep in mind that generally a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

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One thing we would like to bring into light with Esperion Therapeutics is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of Esperion Therapeutics which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Esperion Therapeutics, take a look at Esperion Therapeutics' company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:

  1. Valuation: What is Esperion Therapeutics worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Esperion Therapeutics is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Esperion Therapeutics’s board and the CEO’s background.

  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.