How Do Analysts See MGM China Holdings Limited (HKG:2282) Performing In The Year Ahead?
After MGM China Holdings Limited’s (HKG:2282) earnings announcement in June 2018, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 15% next year against the past 5-year average growth rate of -20%. By 2020, we can expect MGM China Holdings’s bottom line to reach HK$2.7b, a jump from the current trailing-twelve-month of HK$2.3b. Below is a brief commentary around MGM China Holdings’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
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How is MGM China Holdings going to perform in the near future?
Over the next three years, it seems the consensus view of the 16 analysts covering 2282 is skewed towards the 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 get an idea of the overall earnings growth trend for 2282, 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.
This results in an annual growth rate of 29% based on the most recent earnings level of HK$2.3b to the final forecast of HK$5.7b by 2022. EPS reaches HK$1.17 in the final year of forecast compared to the current HK$0.61 EPS today. Margins are currently sitting at 15%, which is expected to expand to 23% by 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For MGM China Holdings, I’ve compiled three key factors you should further research:
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 MGM China Holdings 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 MGM China Holdings is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of MGM China Holdings? 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.
