How Do Analysts See Atresmedia Corporación de Medios de Comunicación, S.A. (BME:A3M) Performing Over The Next Few Years?

Atresmedia Corporación de Medios de Comunicación, S.A.’s (BME:A3M) latest earnings announcement in December 2018 confirmed that the business endured a major headwind with earnings deteriorating by -38%. Below, I’ve laid out key growth figures on how market analysts perceive Atresmedia Corporación de Medios de Comunicación’s earnings growth trajectory over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.

See our latest analysis for Atresmedia Corporación de Medios de Comunicación

Analysts’ outlook for next year seems buoyant, with earnings increasing by a robust 49%. However, earnings is expected to fall slightly in the following year and plateauing, heading into 2022 at €128m.

BME:A3M Past and Future Earnings, April 2nd 2019
BME:A3M Past and Future Earnings, April 2nd 2019

Although it is informative knowing the growth rate each year relative to today’s level, it may be more beneficial determining the rate at which the earnings are moving on average every year. The pro of this method is that it ignores near term flucuations and accounts for the overarching direction of Atresmedia Corporación de Medios de Comunicación’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 12%. This means, we can expect Atresmedia Corporación de Medios de Comunicación will grow its earnings by 12% every year for the next few years.

Next Steps:

For Atresmedia Corporación de Medios de Comunicación, I’ve put together three pertinent aspects 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. Valuation: What is A3M worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether A3M is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of A3M? 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.