What Should We Expect From ReWalk Robotics Ltd.’s (NASDAQ:RWLK) Earnings In The Next Couple Of Years? – Simply Wall St News

ReWalk Robotics Ltd.’s (NASDAQ:RWLK) announced its latest earnings update in December 2018, which
signalled
company earnings became less negative compared to the previous year’s level
– great news for investors
Below is my commentary, albeit very simple and high-level, on
how market analysts
predict
ReWalk Robotics’s
earnings growth
trajectory
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.

Check out our latest analysis for ReWalk Robotics

Market analysts’ prospects
for
the coming
year seems
positive,
with earnings becoming less negative,
arriving at
-US$13.5m in 2020.
However, earnings
should
fall off in the following year,
dwindling
to -US$12.1m in 2021 and -US$10.3m in 2022.

While
it’s
informative knowing
the growth
year by year
relative to today’s
value,
it may be more
beneficial
analyzing
the rate at which the
company is
rising or falling
every year, on average.
The benefit
of this
approach
is that
it removes the impact of near term flucuations and accounts for the overarching direction of ReWalk Robotics’s earnings trajectory over time,
which may be more relevant for long term investors.
To compute
this rate,
I put
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 24%.
This means that,
we can
assume
ReWalk Robotics
will grow its earnings by 24% every year
for the next few years.

Next Steps:

For ReWalk Robotics,
there are
three
key
factors
you should
look at:

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. Future Earnings: How does RWLK’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.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of RWLK? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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