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What Should We Expect From Core-Mark Holding Company Inc’s (NASDAQ:CORE) Earnings In The Year Ahead?

Bryan Cramer

Based on Core-Mark Holding Company Inc’s (NASDAQ:CORE) earnings update in June 2018, it seems that analyst forecasts are fairly optimistic, with profits predicted to increase by 43.6% next year against the past 5-year average growth rate of 6.1%. Presently, with latest-twelve-month earnings at US$34.2m, we should see this growing to US$49.1m by 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Core-Mark Holding Company in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

View our latest analysis for Core-Mark Holding Company

Exciting times ahead?

Longer term expectations from the 7 analysts covering CORE’s stock is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of CORE’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.

NasdaqGS:CORE Future Profit August 28th 18

By 2021, CORE’s earnings should reach US$62.6m, from current levels of US$33.5m, resulting in an annual growth rate of 13.8%. This leads to an EPS of $1.36 in the final year of projections relative to the current EPS of $0.72. Earnings growth appears to be a result of cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. Margins is currently sitting at 0.3%, which is expected to expand to 0.3% by 2021.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Core-Mark Holding Company, there are three essential factors you should further research:

  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 Core-Mark Holding Company 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 Core-Mark Holding Company is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Core-Mark Holding Company? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.