What Should We Expect From Liberty Ventures’s (NASDAQ:LVNT.A) Earnings Over The Next Few Years?
Liberty Ventures’s (NASDAQ:LVNT.A) most recent earnings update in September 2017 showed that the business turned profitable again after incurring negative earnings in the last financial year. Investors may find it useful to understand how market analysts perceive Liberty Ventures’s earnings growth outlook over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. Check out our latest analysis for Liberty Ventures
Market analysts’ consensus outlook for this coming year seems pessimistic, with earnings declining by a double-digit -86.55%. Over the medium term, earnings should continue to be below today’s level, with a decline of -99.41% in 2020, eventually reaching $4.6M in 2021.
Although it’s useful to understand the rate of growth each year relative to today’s figure, it may be more beneficial analyzing the rate at which the company is rising or falling every year, on average. The benefit of this approach is that we can get a bigger picture of the direction of Liberty Ventures’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To compute this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is -49.82%. This means, we can anticipate Liberty Ventures will chip away at a rate of -49.82% every year for the next couple of years.
Next Steps:
For Liberty Ventures, I’ve compiled three relevant factors you should further examine:
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 LVNT.A 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 LVNT.A is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of LVNT.A? 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.
