Yahoo Finance Xeris Biopharma Holdings, Inc.'s (NASDAQ:XERS) Shift From Loss To Profit
We feel now is a pretty good time to analyse Xeris Biopharma Holdings, Inc.'s (NASDAQ:XERS) business as it appears the company may be on the cusp of a considerable accomplishment. Xeris Biopharma Holdings, Inc., a biopharmaceutical company, engages in developing and commercializing therapies in Illinois. With the latest financial year loss of US$62m and a trailing-twelve-month loss of US$64m, the US$344m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Xeris Biopharma Holdings' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Xeris Biopharma Holdings
Consensus from 6 of the American Pharmaceuticals analysts is that Xeris Biopharma Holdings is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$8.4m in 2026. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 65% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Xeris Biopharma Holdings' upcoming projects, though, keep in mind that typically pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
One thing we would like to bring into light with Xeris Biopharma Holdings is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
This article is not intended to be a comprehensive analysis on Xeris Biopharma Holdings, so if you are interested in understanding the company at a deeper level, take a look at Xeris Biopharma Holdings' company page on Simply Wall St. We've also compiled a list of important aspects you should further research:
Historical Track Record: What has Xeris Biopharma Holdings' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Xeris Biopharma Holdings' board and the CEO’s background.
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.
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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.
