What Should We Expect From PRA Health Sciences Inc’s (PRAH) Earnings Over The Next Year?
PRA Health Sciences Inc (NASDAQ:PRAH)’s impressive earnings growth per share is expected to be a big 162.15% over the next three years. At a current EPS of $1.63, this growth rate means shareholders can expect an impending EPS of $4.272. 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 PRAH
Can we expect PRAH to keep growing?
PRA Health Sciences’s growth potential is very attractive. Expectations from 12 analysts are very high, with earnings expected to rise from today’s level of $1.63 to $4.272 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 162.15% over the next few years. In the same period we will see the revenue jump from $1,698M to $2,658M and profits (net income) are predicted to shoot from $100M to $263M in the next couple of years, roughly growing 2.9x. Though, at the current levels of revenue and profit, margins are certainly underwhelming.
Is this similar growth to the past?
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. PRAH’s earnings growth the past couple of years was 76.98% which indicates that the company’s past performance will continue to persist into the future. This means PRAH 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 PRAH, I’ve put together three fundamental 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 PRAH 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 PRAH is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of PRAH? 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.
