What Do Analysts Think About Air Partner plc's (LON:AIR) Future?
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Looking at Air Partner plc's (LON:AIR) earnings update in January 2019, analyst consensus outlook appear vastly optimistic, as a 59% rise in profits is expected in the upcoming year, against the previous 5-year average growth rate of 10%. By 2020, we can expect Air Partner’s bottom line to reach UK£4.6m, a jump from the current trailing-twelve-month of UK£2.9m. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Air Partner in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
Check out our latest analysis for Air Partner
How is Air Partner going to perform in the near future?
Over the next three years, it seems the consensus view of the 2 analysts covering AIR is skewed towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of AIR's earnings growth over these next few years.
From the current net income level of UK£2.9m and the final forecast of UK£5.5m by 2022, the annual rate of growth for AIR’s earnings is 18%. EPS reaches £0.10 in the final year of forecast compared to the current £0.056 EPS today. In 2022, AIR's profit margin will have expanded from 3.7% to 6.2%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Air Partner, there are three important aspects you should look at:
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 Air Partner 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 Air Partner is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Air Partner? 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.
