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Based on Match Group, Inc.’s (NASDAQ:MTCH) earnings update in March 2019, it seems that analyst expectations are fairly bearish, as a 5.3% rise in profits is expected in the upcoming year, compared with the higher past 5-year average growth rate of 38%. With trailing-twelve-month net income at current levels of US$478m, we should see this rise to US$504m in 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
How will Match Group perform in the near future?
The 19 analysts covering MTCH view its longer term outlook with a positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for MTCH, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
From the current net income level of US$478m and the final forecast of US$763m by 2022, the annual rate of growth for MTCH’s earnings is 20%. EPS reaches $2.48 in the final year of forecast compared to the current $1.73 EPS today. Margins are currently sitting at 28%, approximately the same as previous years. With analysts forecasting revenue growth of 0.5742 and MTCH’s net income growth expected to roughly track that, this company may add value for shareholders over time.
Future outlook is only one aspect when you’re building an investment case for a stock. For Match Group, I’ve put together three essential aspects you should further research:
- 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 Match 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 Match Group is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Match 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.