What Do Analysts Think About The Future Of Atlantia S.p.A.'s (BIT:ATL)?
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The latest earnings update Atlantia S.p.A. (BIT:ATL) released in December 2018 suggested that the company experienced a substantial headwind with earnings falling by -31%. Below is my commentary, albeit very simple and high-level, on how market analysts perceive Atlantia's earnings growth trajectory over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
View our latest analysis for Atlantia
Market analysts' prospects for the upcoming year seems positive, with earnings climbing by a significant 96%. This strong level of earnings is expected to be maintained in the following year, before rising up further to €1.7b in 2022.
Although it is useful to be aware of the growth rate year by year relative to today’s level, it may be more valuable to determine the rate at which the earnings are rising or falling every year, on average. The benefit of this method is that it ignores near term flucuations and accounts for the overarching direction of Atlantia's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I've inserted 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 17%. This means, we can assume Atlantia will grow its earnings by 17% every year for the next couple of years.
Next Steps:
For Atlantia, I've compiled three pertinent 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 ATL 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 ATL is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ATL? 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.
