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The latest earnings release SciBase Holding AB (publ)’s (STO:SCIB) announced in December 2018 showed that losses became smaller relative to the prrior year’s level as a result of recent tailwinds Below, I’ve laid out key growth figures on how market analysts perceive SciBase Holding’s earnings growth outlook over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Analysts’ outlook for the upcoming year seems positive, with earnings becoming less negative, arriving at -kr38.0m in 2020. However, earnings are expected to fall off in the following year, decreasing to -kr31.0m in 2021 and -kr25.0m in 2022.
While it is useful to be aware of the growth rate year by year relative to today’s value, it may be more beneficial gauging the rate at which the earnings are moving every year, on average. The pro of this approach is that we can get a better picture of the direction of SciBase Holding’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I’ve appended 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 19%. This means that, we can anticipate SciBase Holding will grow its earnings by 19% every year for the next few years.
For SciBase Holding, I’ve compiled three relevant aspects you should look at:
- 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.
- Future Earnings: How does SCIB’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SCIB? 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 email@example.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.