What Should We Expect From Autohome Inc’s (ATHM) Earnings Over The Next Year?
Autohome Inc (NYSE:ATHM) is predicted to grow its earnings per share by a high double-digit 76.12% over the next three years. At a current EPS of $12.85, this growth rate means shareholders can expect an impending EPS of $22.631. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. See our latest analysis for ATHM
Can we expect ATHM to keep growing?
According to the analysts covering the company, in a few years should bring some good growth prospects for Autohome. Expectation from the stock’s 11 analysts is one of positive sentiment, with earnings estimated to grow from current levels of $12.85 to $22.631 over the next couple of years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 76.12% over the next few years. During the same time revenue is predicted to grow from $6,400M to $9,086M and net income is predicted to rise from $1,483M to $2,611M in the next couple of years, growing by 76.12%. However, margins look rather unappealing at the current levels of revenue and earnings.
Basis for the growth
The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is highly excessive or whether the company has consistently exhibited strength. ATHM’s triple-digit earnings growth the past couple of years indicates that the company’s past performance is supportive of a strong continuation. This means ATHM has already proven its capacity to grow at a robust rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.
Next Steps:
For ATHM, I’ve compiled three fundamental factors 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 ATHM 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 ATHM is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of ATHM? 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.
