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What Do Analysts Think About OneVue Holdings Limited’s (ASX:OVH) Earnings Trajectory?

The most recent earnings announcement OneVue Holdings Limited’s (ASX:OVH) released in June 2018 revealed that the company experienced a significant tailwind, more than doubling its earnings from the prior year. Below is a brief commentary on my key takeaways on how market analysts predict OneVue Holdings’s earnings growth trajectory over the next few years and whether the future looks even brighter than the past. 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 OneVue Holdings

Market analysts’ consensus outlook for next year seems optimistic, with earnings expanding by a robust 32%. This growth seems to continue into the following year with rates arriving at double digit 80% compared to today’s earnings, and finally hitting AU$16m by 2021.

ASX:OVH Future Profit October 3rd 18
ASX:OVH Future Profit October 3rd 18

While it’s informative understanding the growth rate year by year relative to today’s level, it may be more insightful gauging the rate at which the earnings are rising or falling every year, on average. The advantage of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of OneVue Holdings’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 22%. This means, we can presume OneVue Holdings will grow its earnings by 22% every year for the next few years.

Next Steps:

For OneVue Holdings, I’ve compiled three pertinent 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. Future Earnings: How does OVH’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.

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