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Atresmedia Corporación de Medios de Comunicación, S.A. (BME:A3M): What’s The Analyst Consensus Outlook?

Simply Wall St

Atresmedia Corporación de Medios de Comunicación, S.A.’s (BME:A3M) latest earnings update in December 2018 indicated that the company experienced a major headwind with earnings deteriorating by -38%. Below is a brief commentary on my key takeaways on how market analysts view Atresmedia Corporación de Medios de Comunicación’s earnings growth trajectory over the next few 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.

See our latest analysis for Atresmedia Corporación de Medios de Comunicación

Analysts’ outlook for the coming year seems positive, with earnings climbing by a significant 51%. However, this positive earnings growth is not expected to last, with earnings facing a downward direction over the next couple of years, generating €132m in 2022.

BME:A3M Past and Future Earnings, March 12th 2019

Although it is informative understanding the growth each year relative to today’s figure, it may be more valuable analyzing the rate at which the earnings are growing on average every year. The pro of this approach is that it ignores near term flucuations and accounts for the overarching direction of Atresmedia Corporación de Medios de Comunicación’s earnings trajectory over time, be more volatile. To compute this rate, I’ve appended 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 13%. This means, we can expect Atresmedia Corporación de Medios de Comunicación will grow its earnings by 13% every year for the next few years.

Next Steps:

For Atresmedia Corporación de Medios de Comunicación, I’ve put together three key 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 A3M 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 A3M is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of A3M? 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.