Looking at Criteo S.A.'s (NASDAQ:CRTO) earnings update in March 2019, it seems that analyst forecasts are fairly bearish, with profits predicted to drop by 0.1% next year relative to the past 5-year average growth rate of 24%. Presently, with latest-twelve-month earnings at US$89m, we should see this fall to US$89m by 2020. Below is a brief commentary around Criteo's earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
Can we expect Criteo to keep growing?
The 17 analysts covering CRTO view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for CRTO, 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.
This results in an annual growth rate of 3.6% based on the most recent earnings level of US$89m to the final forecast of US$96m by 2022. EPS reaches $1.42 in the final year of forecast compared to the current $1.33 EPS today. Margins are currently sitting at 3.9%, which is expected to expand to 8.9% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Criteo, there are three key factors you should further examine:
- 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 Criteo 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 Criteo is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Criteo? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.