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How Do Analysts See Iliad SA (EPA:ILD) Performing Over The Next Few Years?

Simply Wall St

The latest earnings release Iliad SA's (EPA:ILD) announced in December 2018 revealed that the company faced a immense headwind with earnings deteriorating by -19%. Below is my commentary, albeit very simple and high-level, on how market analysts view Iliad's earnings growth outlook over the next few years and whether the future looks brighter. 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.

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View our latest analysis for Iliad

Market analysts' consensus outlook for the upcoming year seems pessimistic, with earnings falling by -2.5%. But in the following year, there is a complete contrast in performance, with generating double digit 22% compared to today’s level and continues to increase to €461m in 2022.

ENXTPA:ILD Past and Future Earnings, May 18th 2019

Although it is useful to be aware of the growth each year relative to today’s level, it may be more insightful determining the rate at which the company is growing every year, on average. The advantage of this approach is that it ignores near term flucuations and accounts for the overarching direction of Iliad's earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I've appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 13%. This means that, we can presume Iliad will grow its earnings by 13% every year for the next few years.

Next Steps:

For Iliad, I've compiled three pertinent factors 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 ILD 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 ILD is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ILD? 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.