What Are Analysts Saying About Intelsat SA’s (NYSE:I) Future?

In March 2018, Intelsat SA (NYSE:I) announced its earnings update. Overall, analysts seem fairly confident, with earnings expected to grow by 10.81% in the upcoming year compared with the past 5-year average growth rate of -10.42%. By 2019, we can expect Intelsat’s bottom line to reach -US$233.76m, a jump from the current trailing-twelve-month -US$210.96m. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Intelsat in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

See our latest analysis for Intelsat

Can we expect Intelsat to keep growing?

The longer term expectations from the 6 analysts of I is tilted towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To get an idea of the overall earnings growth trend for I, 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.
NYSE:I Future Profit July 25th 18
NYSE:I Future Profit July 25th 18
From the current net income level of -US$178.73m and the final forecast of -US$211.99m by 2021, the annual rate of growth for I’s earnings is 24.02%. However, if we exclude extraordinary items from net income, we see that earnings is projected to fall over time, resulting in an EPS of $-2.4 in the final year of forecast compared to the current $-1.5 EPS today. The main reason for growth is a result of cost cutting activities, as revenues is expected to grow much slower than earnings. With a current profit margin of -8.32%, this movement will result in a margin of -9.66% by 2021.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Intelsat, there are three essential aspects 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 Intelsat 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 Intelsat is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Intelsat? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.