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After Blucora, Inc.'s (NASDAQ:BCOR) recent earnings announcement in March 2019, analyst forecasts appear to be bearish, with earnings expected to decline by 17% in the upcoming year compared with the past 5-year average growth rate of 44%. Presently, with latest-twelve-month earnings at US$45m, we should see this fall to US$37m by 2020. Below is a brief commentary on the longer term outlook the market has for Blucora. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
How is Blucora going to perform in the near future?
The longer term expectations from the 3 analysts of BCOR is tilted towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
This results in an annual growth rate of 19% based on the most recent earnings level of US$45m to the final forecast of US$61m by 2022. EPS reaches $1.84 in the final year of forecast compared to the current $0.94 EPS today. However, the near term margins may change heading into 2022, from the current levels of 8.0% to 7.2%.
Future outlook is only one aspect when you're building an investment case for a stock. For Blucora, there are three relevant 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.
- Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for Blucora's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Blucora? 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 firstname.lastname@example.org. 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.