Tutor Perini Corporation (NYSE:TPC): Poised For Long Term Success?

Based on Tutor Perini Corporation’s (NYSE:TPC) earnings update in December 2018, it seems that analyst forecasts are fairly optimistic, with earnings expected to grow by 38% in the upcoming year compared with the past 5-year average growth rate of 5.2%. By 2020, we can expect Tutor Perini’s bottom line to reach US$115m, a jump from the current trailing-twelve-month of US$83m. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Tutor Perini in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

See our latest analysis for Tutor Perini

How will Tutor Perini perform in the near future?

The view from 6 analysts over the next three years is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. 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 TPC’s earnings growth over these next few years.

NYSE:TPC Past and Future Earnings, April 25th 2019
NYSE:TPC Past and Future Earnings, April 25th 2019

By 2022, TPC’s earnings should reach US$150m, from current levels of US$83m, resulting in an annual growth rate of 21%. EPS reaches $2.96 in the final year of forecast compared to the current $1.67 EPS today. Margins are currently sitting at 1.9%, which is expected to expand to 2.7% by 2022.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Tutor Perini, there are three essential 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 Tutor Perini 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 Tutor Perini is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Tutor Perini? 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.