What Should We Expect From Quixant Plc's (LON:QXT) Earnings In The Year Ahead?
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After Quixant Plc's (LON:QXT) earnings announcement in December 2018, it seems that analyst forecasts are fairly optimistic, with profits predicted to increase by 25% next year against the past 5-year average growth rate of 22%. Currently with trailing-twelve-month earnings of US$14m, we can expect this to reach US$18m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
See our latest analysis for Quixant
Can we expect Quixant to keep growing?
The longer term expectations from the 4 analysts of QXT is tilted towards the 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 QXT'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.
From the current net income level of US$14m and the final forecast of US$20m by 2022, the annual rate of growth for QXT’s earnings is 11%. This leads to an EPS of $0.30 in the final year of projections relative to the current EPS of $0.21. Margins are currently sitting at 12%, which is expected to expand to 14% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Quixant, there are three essential 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 Quixant 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 Quixant is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Quixant? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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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.
