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What Are Analysts Saying About Bouygues SA's (EPA:EN) Earnings Trend?

Simply Wall St

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In December 2018, Bouygues SA (EPA:EN) announced its most recent earnings update, which showed that the company experienced a strong tailwind, eventuating to a double-digit earnings growth of 21%. Below, I've laid out key growth figures on how market analysts predict Bouygues's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.

Check out our latest analysis for Bouygues

Analysts' expectations for this coming year seems pessimistic, with earnings reducing by a double-digit -18%. Beyond this, earnings are expected to continue to be below today's level, with a decline of -11% in 2021, eventually reaching €1.2b in 2022.

ENXTPA:EN Past and Future Earnings, April 3rd 2019

Although it’s useful to understand the growth year by year relative to today’s level, it may be more valuable to gauge the rate at which the business is rising or falling on average every year. The advantage of this approach is that we can get a better picture of the direction of Bouygues's earnings trajectory over the long run, irrespective of near term fluctuations, 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 0.7%. This means that, we can presume Bouygues will grow its earnings by 0.7% every year for the next few years.

Next Steps:

For Bouygues, I've compiled three fundamental 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 EN 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 EN is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of EN? 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 editorial-team@simplywallst.com. 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.