When Can We Expect A Profit From Terran Orbital Corporation (NYSE:LLAP)?
With the business potentially at an important milestone, we thought we'd take a closer look at Terran Orbital Corporation's (NYSE:LLAP) future prospects. Terran Orbital Corporation manufactures and sells satellites for aerospace and defense industry in the United States. With the latest financial year loss of US$164m and a trailing-twelve-month loss of US$147m, the US$223m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Terran Orbital 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.
View our latest analysis for Terran Orbital
Consensus from 5 of the American Aerospace & Defense analysts is that Terran Orbital is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$49m in 2025. Therefore, the company is expected to breakeven roughly 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 75%, which signals high confidence from analysts. 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 Terran Orbital's upcoming projects, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one issue worth mentioning. Terran Orbital 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 too many aspects of Terran Orbital to cover in one brief article, but the key fundamentals for the company can all be found in one place – Terran Orbital's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:
Valuation: What is Terran Orbital 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 Terran Orbital is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Terran Orbital’s 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.
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.
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