What Should We Expect From Acciona SA.’s (BME:ANA) Earnings In The Year Ahead?
In December 2017, Acciona SA. (BME:ANA) announced its latest earnings update. Overall, it seems that analyst forecasts are fairly optimistic, as a 9.48% increase in profits is expected in the upcoming year, relative to the past 5-year average growth rate of 6.35%. Currently with earnings of €220.13M, we can expect this to reach €241.01M by 2019. I will provide a brief commentary around the figures and analyst expectations in the near term. For those interested in more of an analysis of the company, you can research its fundamentals here. See our latest analysis for Acciona
Can we expect Acciona to keep growing?
The view from 13 analysts over the next three years is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. 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 4.25% based on the most recent earnings level of €220.13M to the final forecast of €264.25M by 2021. EPS reaches €4.91 in the final year of forecast compared to the current €3.85 EPS today. The bottom-line growth seems to be caused by cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. With a current profit margin of 2.80%, this movement will result in a margin of 3.62% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Acciona, I’ve compiled three important factors 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 Acciona 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 Acciona is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Acciona? 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.
