What Should We Expect From AMG Advanced Metallurgical Group N.V.'s (AMS:AMG) Earnings In The Year Ahead?

In March 2019, AMG Advanced Metallurgical Group N.V. (AMS:AMG) released its earnings update. Generally, the consensus outlook from analysts appear somewhat bearish, with profits predicted to rise by 3.0% next year compared with the higher past 5-year average growth rate of 46%. Presently, with latest-twelve-month earnings at US$95m, we should see this growing to US$97m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

See our latest analysis for AMG Advanced Metallurgical Group

How is AMG Advanced Metallurgical Group going to perform in the near future?

The longer term expectations from the 5 analysts of AMG is tilted towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of AMG's earnings growth over these next few years.

This results in an annual growth rate of 15% based on the most recent earnings level of US$95m to the final forecast of US$116m by 2022. This leads to an EPS of $3.46 in the final year of projections relative to the current EPS of $3.12. Margins are currently sitting at 7.2%, which is expected to expand to 8.2% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For AMG Advanced Metallurgical Group, I've compiled three fundamental aspects you should look at:

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 AMG Advanced Metallurgical Group 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 AMG Advanced Metallurgical Group is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of AMG Advanced Metallurgical Group? 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.