What Should We Expect From intu properties plc’s (LON:INTU) Earnings In The Next Couple Of Years?

The most recent earnings update intu properties plc’s (LSE:INTU) released in December 2017 indicated that the company experienced a strong tailwind, eventuating to a double-digit earnings growth of 18.61%. Below, I’ve laid out key growth figures on how market analysts perceive intu properties’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. Check out our latest analysis for intu properties

Analysts’ expectations for the upcoming year seems pessimistic, with earnings turning into a loss in 2019. Though this loss doesn’t seem to last long as INTU turns profitable again by 2021 with earnings expected to be -UK£487.69M.

LSE:INTU Future Profit May 24th 18
LSE:INTU Future Profit May 24th 18

Even though it is helpful to understand the rate of growth each year relative to today’s figure, it may be more valuable analyzing the rate at which the earnings are rising or falling every year, on average. The advantage of this method is that we can get a better picture of the direction of intu properties’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 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 42.54%. This means that, we can anticipate intu properties will grow its earnings by 42.54% every year for the next couple of years.

Next Steps:

For intu properties, I’ve compiled three important factors you should further examine:

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