What Are Analysts Expecting From Archer Limited (OB:ARCHER) In The Next Couple Of Years?
Archer Limited’s (OB:ARCHER) most recent earnings announcement in December 2017 signalled that the company finally turned profitable after losses on average over the past few years. Below, I’ve laid out key growth figures on how market analysts perceive Archer’s earnings growth outlook over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. View our latest analysis for Archer
Market analysts’ consensus outlook for this coming year seems pessimistic, with earnings turning into a loss in 2019. However, ARCHER isn’t in the red zone for long, with earnings predicted to bounce bank the following year, reaching US$30.84M and eventually climbing to US$35.91M in 2021.
Even though it’s informative understanding the rate of growth year by year relative to today’s level, it may be more valuable determining the rate at which the earnings are growing every year, on average. The pro of this method is that it ignores near term flucuations and accounts for the overarching direction of Archer’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I’ve appended 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 -21.84%. This means, we can expect Archer will chip away at a rate of -21.84% every year for the next couple of years.
Next Steps:
For Archer, I’ve put together three relevant 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 ARCHER 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 ARCHER is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ARCHER? 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.
