What Should Investors Know About Intelsat SA.’s (NYSE:I) Future?

Looking at Intelsat SA.’s (NYSE:I) earnings update in December 2017, analyst forecasts seem bearish, with profits predicted to drop by -1.39% next year. However, compared to its 5-year track record of the average earnings growth rate of -12.77%, this is still an improvement. Currently with a profit of -US$178.73M, the consensus growth rate suggests that earnings will drop to -US$176.25M by 2019. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here. See our latest analysis for Intelsat

What can we expect from Intelsat in the longer term?

The longer term expectations from the 8 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. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of I’s earnings growth over these next few years.
NYSE:I Future Profit Mar 14th 18
NYSE:I Future Profit Mar 14th 18
This results in an annual growth rate of 21.90% based on the most recent earnings level of -US$178.73M to the final forecast of -US$289.45M by 2021. This leads to an EPS of $-0.83 in the final year of projections relative to the current EPS of $-1.5. The primary reason for earnings growth is due to cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. With a current profit margin of -8.32%, this movement will result in a margin of -13.40% by 2021.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Intelsat, I’ve put together three fundamental 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 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!