How Do Analysts See Flight Centre Travel Group Limited (ASX:FLT) Performing Over The Next Year?
Based on Flight Centre Travel Group Limited’s (ASX:FLT) earnings update on 31 December 2018, it seems that analyst forecasts are fairly optimistic, as a 18% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 1.9%. By 2020, we can expect Flight Centre Travel Group’s bottom line to reach AU$310m, a jump from the current trailing-twelve-month of AU$263m. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Flight Centre Travel Group in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
See our latest analysis for Flight Centre Travel Group
How will Flight Centre Travel Group perform in the near future?
The longer term view from the 13 analysts covering FLT is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To understand the overall trajectory of FLT’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.
From the current net income level of AU$263m and the final forecast of AU$363m by 2022, the annual rate of growth for FLT’s earnings is 8.9%. EPS reaches A$3.34 in the final year of forecast compared to the current A$2.6 EPS today. In 2022, FLT’s profit margin will have expanded from 9.0% to 11%.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Flight Centre Travel Group, I’ve compiled three fundamental 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 Flight Centre Travel Group 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 Flight Centre Travel Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Flight Centre Travel Group? 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.
