What Are Analysts Saying About British Land Company Plc’s (LON:BLND) Earnings Trend?
The most recent earnings release British Land Company Plc’s (LSE:BLND) announced in September 2017 indicated that the company faced a significant headwind with earnings deteriorating by -85.65%. Below is a brief commentary on my key takeaways on how market analysts perceive British Land Company’s earnings growth outlook over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. See our latest analysis for British Land Company
Analysts’ outlook for the coming year seems pessimistic, with earnings decreasing by a double-digit -27.56%. Beyond this, earnings are expected to continue to be below today’s level, with a decline of -23.39% in 2020, eventually reaching £480.3M in 2021.
Although it’s helpful to understand the rate of growth each year relative to today’s figure, it may be more beneficial to evaluate the rate at which the earnings are moving on average every year. The pro of this technique is that it ignores near term flucuations and accounts for the overarching direction of British Land Company’s earnings trajectory over time, fluctuate up and down. To compute this rate, I put a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is -2.96%. This means that, we can expect British Land Company will chip away at a rate of -2.96% every year for the next couple of years.
Next Steps:
For British Land Company, I’ve compiled three essential 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 BLND 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 BLND is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of BLND? 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.
