What Should We Expect From AIMS AMP Capital Industrial REIT's (SGX:O5RU) Earnings In The Year Ahead?

Looking at AIMS AMP Capital Industrial REIT's (SGX:O5RU) earnings update in March 2018, it seems that analyst forecasts are fairly optimistic, with earnings expected to grow by 10.80% in the upcoming year compared with the past 5-year average growth rate of -13.91%. With net income at current levels of S$61.19M, we should see this rise to S$67.80M in 2019. 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. View our latest analysis for AIMS AMP Capital Industrial REIT

How is AIMS AMP Capital Industrial REIT going to perform in the near future?

Over the next three years, it seems the consensus view of the 3 analysts covering O5RU is skewed towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. 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 O5RU's earnings growth over these next few years.

By 2021, O5RU's earnings should reach S$68.80M, from current levels of S$61.19M, resulting in an annual growth rate of 3.53%. EPS reaches SGD0.1 in the final year of forecast compared to the current SGD0.09 EPS today. The main reason for growth is a result of cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. With a current profit margin of 52.34%, this movement will result in a margin of 53.46% by 2021.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For AIMS AMP Capital Industrial REIT, I've put together 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 AIMS AMP Capital Industrial REIT 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 AIMS AMP Capital Industrial REIT is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of AIMS AMP Capital Industrial REIT? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.