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What Are Analysts Saying About The Future Of Event Hospitality & Entertainment Limited's (ASX:EVT)?

Simply Wall St

Event Hospitality & Entertainment Limited's (ASX:EVT) latest earnings announcement in August 2019 revealed that the company benefited from a slight tailwind, leading to a single-digit earnings growth of 5.5%. Below, I've presented key growth figures on how market analysts predict Event Hospitality & Entertainment's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.

See our latest analysis for Event Hospitality & Entertainment

Market analysts' prospects for next year seems optimistic, with earnings rising by a robust 46%. However, earnings is expected to fall slightly in the following year before rising again to AU$127m in 2022.

ASX:EVT Past and Future Earnings, September 16th 2019

Although it is useful to be aware of the growth rate each year relative to today’s level, it may be more beneficial to evaluate the rate at which the business is rising or falling every year, on average. The benefit of this technique is that it ignores near term flucuations and accounts for the overarching direction of Event Hospitality & Entertainment's earnings trajectory over time, fluctuate up and down. To calculate this rate, I've appended 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 1.3%. This means, we can presume Event Hospitality & Entertainment will grow its earnings by 1.3% every year for the next couple of years.

Next Steps:

For Event Hospitality & Entertainment, there are three fundamental aspects 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. Valuation: What is EVT 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 EVT is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of EVT? 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.