Terna – Rete Elettrica Nazionale Società per Azioni (BIT:TRN): What’s The Analyst Consensus Outlook?

Terna – Rete Elettrica Nazionale Società per Azioni’s (BIT:TRN) released its most recent earnings update in December 2018, which showed that the company experienced a small tailwind, leading to a single-digit earnings growth of 2.7%. Below, I’ve laid out key growth figures on how market analysts view Terna – Rete Elettrica Nazionale Società per Azioni’s earnings growth trajectory over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.

View our latest analysis for Terna – Rete Elettrica Nazionale Società per Azioni

Market analysts’ prospects for this coming year seems rather subdued, with earnings growing by a single digit 4.0%. The following year doesn’t look much more exciting, though earnings does reach €779m in 2022.

BIT:TRN Past and Future Earnings, April 16th 2019
BIT:TRN Past and Future Earnings, April 16th 2019

Even though it is helpful to be aware of the growth each year relative to today’s level, it may be more beneficial to evaluate the rate at which the earnings are rising or falling on average every year. The pro of this method is that we can get a bigger picture of the direction of Terna – Rete Elettrica Nazionale Società per Azioni’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 the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 3.2%. This means that, we can presume Terna – Rete Elettrica Nazionale Società per Azioni will grow its earnings by 3.2% every year for the next few years.

Next Steps:

For Terna – Rete Elettrica Nazionale Società per Azioni, I’ve compiled 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 TRN 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 TRN is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of TRN? 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.