Wintrust Financial Corporation (NASDAQ:WTFC): Poised For Long-Term Success?

Wintrust Financial Corporation’s (NASDAQ:WTFC) latest earnings announcement in December 2018 revealed that the company experienced a robust tailwind, eventuating to a double-digit earnings growth of 35%. Below, I’ve presented key growth figures on how market analysts perceive Wintrust Financial’s earnings growth outlook over the next few years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.

See our latest analysis for Wintrust Financial

Market analysts’ consensus outlook for the coming year seems buoyant, with earnings increasing by a robust 12%. This growth seems to continue into the following year with rates arriving at double digit 21% compared to today’s earnings, and finally hitting US$447m by 2022.

NasdaqGS:WTFC Past and Future Earnings, March 20th 2019
NasdaqGS:WTFC Past and Future Earnings, March 20th 2019

While it is useful to understand the growth year by year relative to today’s figure, it may be more beneficial to determine the rate at which the business is rising or falling every year, on average. The benefit of this method is that we can get a bigger picture of the direction of Wintrust Financial’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 9.1%. This means, we can expect Wintrust Financial will grow its earnings by 9.1% every year for the next couple of years.

Next Steps:

For Wintrust Financial, I’ve put together three important 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 WTFC 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 WTFC is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of WTFC? 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.