What Should Investors Know About Brunello Cucinelli S.p.A.’s (BIT:BC) Future?

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After Brunello Cucinelli S.p.A.’s (BIT:BC) earnings announcement in December 2018, analyst consensus outlook appear cautiously subdued, as a 8.3% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 13%. Presently, with latest-twelve-month earnings at €51m, we should see this growing to €55m by 2020. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Brunello Cucinelli in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

View our latest analysis for Brunello Cucinelli

How is Brunello Cucinelli going to perform in the near future?

The 11 analysts covering BC view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of BC’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.

BIT:BC Past and Future Earnings, May 28th 2019
BIT:BC Past and Future Earnings, May 28th 2019

By 2022, BC’s earnings should reach €63m, from current levels of €51m, resulting in an annual growth rate of 6.4%. EPS reaches €0.93 in the final year of forecast compared to the current €0.75 EPS today. As revenues is expected to outpace earnings, analysts expect margins to contract from the current 9.2% to 9.0% by the end of 2022.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Brunello Cucinelli, there are three key aspects 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 Brunello Cucinelli 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 Brunello Cucinelli is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Brunello Cucinelli? 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.