How Do Analysts See Control4 Corporation (NASDAQ:CTRL) Performing In The Next 12 Months?
In June 2018, Control4 Corporation (NASDAQ:CTRL) announced its earnings update. Overall, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 24% next year, though this is comparatively lower than the past 5-year average earnings growth of 37%. By 2019, we can expect Control4’s bottom line to reach US$24m, a jump from the current trailing-twelve-month US$19m. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Control4 in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
View our latest analysis for Control4
Can we expect Control4 to keep growing?
The 8 analysts covering CTRL view its longer term outlook with a positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of CTRL’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2021, CTRL’s earnings should reach US$36m, from current levels of US$16m, resulting in an annual growth rate of 26%. This leads to an EPS of $1.62 in the final year of projections relative to the current EPS of $0.64. Growth in earnings appears to be a result of reduction in costs rather than purely top-line expansion as earnings is increasing at a faster rate. With a current profit margin of 6.5%, this movement will result in a margin of 11% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Control4, I’ve compiled three important 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 Control4 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 Control4 is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Control4? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
