As G-III Apparel Group, Ltd. (NASDAQ:GIII) announced its earnings release on 31 January 2019, the consensus outlook from analysts appear fairly confident, with earnings expected to grow by 21% in the upcoming year compared with the past 5-year average growth rate of -2.8%. By 2020, we can expect G-III Apparel Group’s bottom line to reach US$166m, a jump from the current trailing-twelve-month of US$138m. Below is a brief commentary on the longer term outlook the market has for G-III Apparel Group. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
How will G-III Apparel Group perform in the near future?
The 8 analysts covering GIII view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of GIII’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2022, GIII’s earnings should reach US$208m, from current levels of US$138m, resulting in an annual growth rate of 13%. EPS reaches $4.07 in the final year of forecast compared to the current $2.81 EPS today. With a current profit margin of 4.5%, this movement will result in a margin of 5.8% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For G-III Apparel Group, I’ve put together three pertinent factors 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.
- Valuation: What is G-III Apparel Group 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 G-III Apparel Group is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of G-III Apparel Group? 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.