Since TPI Composites Inc (NASDAQ:TPIC) released its earnings in December 2017, analyst consensus outlook appear bearish, with earnings expected to decline by -69.71% in the upcoming year relative to the past 5-year average growth rate of 72.83%. Currently with a profit of US$43.69M, the consensus growth rate suggests that earnings will drop to US$13.23M by 2019. Below is a brief commentary around TPI Composites’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those interested in more of an analysis of the company, you can research its fundamentals here. View our latest analysis for TPI Composites
How will TPI Composites perform in the near future?
Longer term expectations from the 8 analysts covering TPIC’s stock 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 TPIC’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.
By 2021, TPIC’s earnings should reach US$91.10M, from current levels of US$43.69M, resulting in an annual growth rate of 26.22%. This leads to an EPS of $2.56 in the final year of projections relative to the current EPS of $1.29. The main reason for growth is a result of cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. In 2021, TPIC’s profit margin will have expanded from 4.70% to 5.66%.
Future outlook is only one aspect when you’re building an investment case for a stock. For TPI Composites, there are three fundamental factors 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 TPI Composites 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 TPI Composites is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of TPI Composites? 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 pass 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.