What Do Analysts Think About EVRAZ plc’s (LON:EVR) Earnings Outlook?

The most recent earnings release EVRAZ plc’s (LSE:EVR) announced in December 2017 signalled that the business finally turned profitable after delivering negative earnings on average over the past few years. Below, I’ve laid out key numbers on how market analysts view EVRAZ’s earnings growth outlook over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. See our latest analysis for EVRAZ

Market analysts’ consensus outlook for next year seems optimistic, with earnings increasing by a significant 91.14%. Decline and plateau

LSE:EVR Future Profit Apr 10th 18
LSE:EVR Future Profit Apr 10th 18

Even though it’s helpful to be aware of the growth rate each year relative to today’s level, it may be more valuable estimating the rate at which the business is growing every year, on average. The benefit of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of EVRAZ’s earnings trajectory over time, fluctuate up and down. To calculate 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 7.32%. This means that, we can presume EVRAZ will grow its earnings by 7.32% every year for the next few years.

Next Steps:

For EVRAZ, I’ve compiled three key aspects you should further research:

  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 EVR 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 EVR is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of EVR? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!