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What Should We Expect From Henry Boot PLC's (LON:BOOT) Earnings In The Next 12 Months?

Simply Wall St

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In December 2018, Henry Boot PLC (LON:BOOT) announced its earnings update. Overall, analyst consensus outlook appear cautiously subdued, as a 2.7% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 22%. Presently, with latest-twelve-month earnings at UK£37m, we should see this growing to UK£38m by 2020. Below is a brief commentary on the longer term outlook the market has for Henry Boot. For those keen to understand more about other aspects of the company, you can research its fundamentals here.

Check out our latest analysis for Henry Boot

Can we expect Henry Boot to keep growing?

The longer term view from the 4 analysts covering BOOT is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To understand the overall trajectory of BOOT'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.

LSE:BOOT Past and Future Earnings, July 15th 2019

This results in an annual growth rate of 4.2% based on the most recent earnings level of UK£37m to the final forecast of UK£44m by 2022. EPS reaches £0.30 in the final year of forecast compared to the current £0.28 EPS today. With a current profit margin of 9.4%, this movement will result in a margin of 12% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Henry Boot, I've put together three key aspects 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 Henry Boot 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 Henry Boot is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Henry Boot? 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.