Consolidated Communications Holdings Inc (NASDAQ:CNSL): What’s The Analyst Consensus Outlook?
Consolidated Communications Holdings Inc’s (NASDAQ:CNSL) most recent earnings announcement in December 2017 showed that the business experienced a substantial tailwind, more than doubling its earnings from the prior year. Below is my commentary, albeit very simple and high-level, on how market analysts view Consolidated Communications Holdings’s earnings growth outlook 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 Consolidated Communications Holdings
Market analysts’ prospects for the upcoming year seems pessimistic, with earnings turning into a loss in 2019. However, CNSL isn’t in the red zone for long, with earnings predicted to bounce bank the following year, arriving at US$576.40K and eventually climbing to US$5.19M in 2021.
Although it’s useful to be aware of the rate of growth year by year relative to today’s value, it may be more insightful estimating the rate at which the business is rising or falling on average every year. The benefit of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of Consolidated Communications Holdings’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is -59.58%. This means, we can anticipate Consolidated Communications Holdings will chip away at a rate of -59.58% every year for the next few years.
Next Steps:
For Consolidated Communications Holdings, I’ve compiled three important aspects you should further examine:
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 CNSL 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 CNSL is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of CNSL? 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.
