How Do Analysts See LC Corp SA. (WSE:LCC) Performing In The Next Couple Of Years?
LC Corp SA.’s (WSE:LCC) latest earnings announcement in December 2017 revealed that the company experienced a immense headwind with earnings deteriorating by -29.07%. Below is a brief commentary on my key takeaways on how market analysts perceive LC’s earnings growth outlook over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. View our latest analysis for LC
Analysts’ outlook for this coming year seems buoyant, with earnings growth more than doubling. Earnings seem to continue strongly in the following year, finally generating ZŁ189.53M in 2021.
Even though it’s useful to understand the rate of growth year by year relative to today’s value, it may be more insightful to analyze the rate at which the business is growing every year, on average. The advantage of this method is that it ignores near term flucuations and accounts for the overarching direction of LC’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I put 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 14.73%. This means that, we can anticipate LC will grow its earnings by 14.73% every year for the next couple of years.
Next Steps:
For LC, I’ve compiled three pertinent aspects 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.
Future Earnings: How does LCC’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of LCC? 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 pass 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.
