What Should We Expect From Porvair plc's (LON:PRV) Earnings Over The Next Few Years?
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The latest earnings release Porvair plc's (LON:PRV) announced in November 2018 suggested that the business benefited from a robust tailwind, leading to a double-digit earnings growth of 13%. Below, I've presented key growth figures on how market analysts predict Porvair's earnings growth outlook over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
See our latest analysis for Porvair
Market analysts' consensus outlook for next year seems rather subdued, with earnings increasing by a single digit 3.5%. The following year doesn't look much more exciting, though earnings does reach UK£12m in 2022.
Even though it is useful to be aware of the growth rate year by year relative to today’s level, it may be more beneficial to gauge the rate at which the earnings are moving on average every year. The benefit of this technique is that we can get a better picture of the direction of Porvair's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. 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 4.9%. This means that, we can anticipate Porvair will grow its earnings by 4.9% every year for the next couple of years.
Next Steps:
For Porvair, I've compiled three pertinent aspects you should further research:
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 PRV 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 PRV is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of PRV? 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.
