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How Do Analysts See Shutterstock, Inc. (NYSE:SSTK) Performing In The Next 12 Months?

Simply Wall St

In March 2019, Shutterstock, Inc. (NYSE:SSTK) released its earnings update. Generally, analysts seem fairly confident, as a 18% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of 14%. By 2020, we can expect Shutterstock’s bottom line to reach US$65m, a jump from the current trailing-twelve-month of US$55m. Below is a brief commentary on the longer term outlook the market has for Shutterstock. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

View our latest analysis for Shutterstock

Exciting times ahead?

The view from 4 analysts over the next three years is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of SSTK'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.

NYSE:SSTK Past and Future Earnings, July 30th 2019
NYSE:SSTK Past and Future Earnings, July 30th 2019

From the current net income level of US$55m and the final forecast of US$115m by 2022, the annual rate of growth for SSTK’s earnings is 25%. This leads to an EPS of $1.71 in the final year of projections relative to the current EPS of $1.57. Margins are currently sitting at 8.8%, which is expected to expand to 14% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Shutterstock, there are three fundamental aspects 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 Shutterstock 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 Shutterstock is currently mispriced by the market.

  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Shutterstock? 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.