Want to participate in a short research study? Help shape the future of investing tools and receive a $20 prize!
In December 2018, Air Lease Corporation (NYSE:AL) released its most recent earnings announcement, which confirmed that the business endured a substantial headwind with earnings falling by -32%. Below, I’ve presented key growth figures on how market analysts predict Air Lease’s earnings growth outlook over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
Market analysts’ consensus outlook for this coming year seems positive, with earnings increasing by a robust 24%. This growth seems to continue into the following year with rates reaching double digit 49% compared to today’s earnings, and finally hitting US$930m by 2022.
While it is useful to understand the growth rate each year relative to today’s level, it may be more beneficial to analyze the rate at which the company is rising or falling on average every year. The advantage of this approach is that we can get a better picture of the direction of Air Lease’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’ve inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 18%. This means, we can expect Air Lease will grow its earnings by 18% every year for the next few years.
For Air Lease, there are three pertinent aspects you should further examine:
- 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.
- Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for AL’s future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of AL? 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 firstname.lastname@example.org. 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.