AerCap Holdings NV (NYSE:AER)’s sound earnings growth per share is expected to be a low, single-digit 3.89% over the next three years. Presently, with an EPS of $6.571, we can expect an upcoming EPS of $6.827. To assess the reasonability of AER’s earnings growth per share, we should look at its most recent growth rate delivered. Check out our latest analysis for AerCap Holdings N.V
How is AerCap Holdings N.V going to perform in the future?
AER is covered by 11 analysts who by consensus are expecting earnings to increase from today’s level of $6.571 to $6.827 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 3.89% over the next few years, which is an optimistic outlook in the near term. In the same period and profit is predicted to slightly grow from $1,134M to $1,178M in the next couple of years, roughly staying around the same level. Though, at the current levels of revenue and profit, margins are certainly underwhelming.
Is the growth built on solid basis?
The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth exhibits a continuation of this level or if the company is expected to face some further headwinds. AER delivered a significantly high triple-digit growth rate in the past couple of years, compared to the less exciting rate expected this year. This may indicate a more sustainable level of growth as the company comes off a high-growth period. On the other hand, a more pessimistic outlook questions the company’s ability to continue as a high performer.
For AER, there are three pertinent factors you should further research:
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. Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for AER’s future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of AER? 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.