What Should We Expect From ZAGG Inc's (NASDAQ:ZAGG) Earnings In The Years Ahead?

The latest earnings announcement ZAGG Inc's (NASDAQ:ZAGG) released in December 2017 signalled that the company turned profitable again after experiencing negative earnings in the previous financial year. Below, I've laid out key numbers on how market analysts perceive ZAGG's earnings growth trajectory over the next couple of 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. View our latest analysis for ZAGG

Market analysts' prospects for the coming year seems positive, with earnings growth more than doubling. However, earnings seem to drop of in the following year reaching US$40.95M by 2021.

Although it’s helpful to be aware of the rate of growth year by year relative to today’s value, it may be more beneficial to evaluate the rate at which the earnings are growing every year, on average. The pro of this approach is that we can get a better picture of the direction of ZAGG'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 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 15.50%. This means, we can anticipate ZAGG will grow its earnings by 15.50% every year for the next few years.

Next Steps:

For ZAGG, 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 ZAGG 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 ZAGG is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ZAGG? 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.