Anaplan, Inc.’s (NYSE:PLAN) released its most recent earnings update in January 2019, which showed that losses became smaller relative to the prior year’s level as a result of recent tailwinds Below, I’ve laid out key numbers on how market analysts predict Anaplan’s earnings growth trajectory over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Market analysts’ prospects for this coming year seems pessimistic, with earnings becoming even more negative, generating -US$155.9m in 2020. However, earnings are expected to move into an upward trend, generating -US$171.3m in 2021, before plateauing down to -US$144.3m in 2022.
Even though it’s informative knowing the growth year by year relative to today’s figure, it may be more beneficial to evaluate the rate at which the company is growing on average every year. The pro of this approach is that it ignores near term flucuations and accounts for the overarching direction of Anaplan’s earnings trajectory over time, fluctuate up and down. To calculate this rate, I put 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 -4.7%. This means that, we can anticipate Anaplan will chip away at a rate of -4.7% every year for the next few years.
For Anaplan, there are three pertinent 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.
- Future Earnings: How does PLAN’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of PLAN? 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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