Based on Atresmedia Corporación de Medios de Comunicación, S.A.’s (BME:A3M) earnings update on 31 December 2018, analyst consensus outlook appear cautiously optimistic, with earnings expected to grow by 48% in the upcoming year relative to the past 5-year average growth rate of 19%. By 2020, we can expect Atresmedia Corporación de Medios de Comunicación’s bottom line to reach €130m, a jump from the current trailing-twelve-month of €88m. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Atresmedia Corporación de Medios de Comunicación in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Can we expect Atresmedia Corporación de Medios de Comunicación to keep growing?
The longer term view from the 17 analysts covering A3M is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of A3M’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2022, A3M’s earnings should reach €126m, from current levels of €88m, resulting in an annual growth rate of 11%. This leads to an EPS of €0.57 in the final year of projections relative to the current EPS of €0.39. Margins are currently sitting at 9.0%, which is expected to expand to 12% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Atresmedia Corporación de Medios de Comunicación, I’ve put together three key 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.
- Valuation: What is Atresmedia Corporación de Medios de Comunicación 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 Atresmedia Corporación de Medios de Comunicación is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Atresmedia Corporación de Medios de Comunicación? 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 email@example.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.