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How Do Analysts See Gray Television, Inc. (NYSE:GTN) Performing In The Next 12 Months?

Simply Wall St

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On 31 March 2019, Gray Television, Inc. (NYSE:GTN) announced its earnings update. Overall, the consensus outlook from analysts appear somewhat bearish, with earnings expected to grow by 1.8% in the upcoming year relative to the higher past 5-year average growth rate of 46%. Presently, with latest-twelve-month earnings at US$211m, we should see this growing to US$215m by 2020. Below is a brief commentary around Gray Television's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.

View our latest analysis for Gray Television

Exciting times ahead?

The longer term view from the 6 analysts covering GTN is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for GTN, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.

NYSE:GTN Past and Future Earnings, June 7th 2019

This results in an annual growth rate of 32% based on the most recent earnings level of US$211m to the final forecast of US$379m by 2022. EPS reaches $2.7 in the final year of forecast compared to the current $2.39 EPS today. Margins are currently sitting at 19%, approximately the same as previous years. With analysts forecasting revenue growth of 0.76891 and GTN's net income growth expected to roughly track that, this company may add value for shareholders over time.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Gray Television, I've compiled three relevant factors you should look at:

  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 Gray Television 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 Gray Television is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Gray Television? 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.