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The most recent earnings release Leasinvest Real Estate SCA’s (EBR:LEAS) announced in March 2019 confirmed that the business endured a significant headwind with earnings declining by -20%. Below is a brief commentary on my key takeaways on how market analysts view Leasinvest Real Estate’s earnings growth outlook over the next couple of 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.
Market analysts’ prospects for the coming year seems pessimistic, with earnings reducing by -3.2%. In the next couple of years, earnings are expected to continue to be below today’s level, with a decrease of -0.07% in 2021, eventually reaching €38m in 2022.
Although it’s helpful to be aware of the growth rate each year relative to today’s level, it may be more beneficial analyzing the rate at which the business is rising or falling on average every year. The pro of this method is that we can get a bigger picture of the direction of Leasinvest Real Estate’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 inserted 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 1.9%. This means, we can expect Leasinvest Real Estate will grow its earnings by 1.9% every year for the next few years.
For Leasinvest Real Estate, I’ve compiled three fundamental factors 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.
- Future Earnings: How does LEAS’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.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of LEAS? 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 firstname.lastname@example.org. 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.