Eldorado Resorts, Inc. (NASDAQ:ERI): Poised For Long Term Success?
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In March 2019, Eldorado Resorts, Inc. (NASDAQ:ERI) released its earnings update. Generally, analysts seem extremely confident, as a 63% rise in profits is expected in the upcoming year, compared with the historical 5-year average growth rate of 37%. By 2020, we can expect Eldorado Resorts’s bottom line to reach US$155m, a jump from the current trailing-twelve-month of US$95m. Below is a brief commentary around Eldorado Resorts's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for Eldorado Resorts
Exciting times ahead?
The longer term expectations from the 10 analysts of ERI is tilted towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of ERI's earnings growth over these next few years.
By 2022, ERI's earnings should reach US$200m, from current levels of US$95m, resulting in an annual growth rate of 16%. This leads to an EPS of $3.15 in the final year of projections relative to the current EPS of $1.23. Margins are currently sitting at 4.6%, which is expected to expand to 8.1% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Eldorado Resorts, I've compiled three essential 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.
Valuation: What is Eldorado Resorts 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 Eldorado Resorts is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Eldorado Resorts? 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.
