What Should We Expect From Terex Corporation’s (NYSE:TEX) Earnings In The Next 12 Months?
In June 2018, Terex Corporation (NYSE:TEX) released its earnings update. Generally, analysts seem extremely confident, as a 94% rise in profits is expected in the upcoming year, relative to the historical 5-year average growth rate of -30%. Currently with trailing-twelve-month earnings of US$128m, we can expect this to reach US$249m by 2019. Below is a brief commentary on the longer term outlook the market has for Terex. For those interested in more of an analysis of the company, you can research its fundamentals here.
View our latest analysis for Terex
Can we expect Terex to keep growing?
The 17 analysts covering TEX view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of TEX’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.
This results in an annual growth rate of 9.4% based on the most recent earnings level of US$60m to the final forecast of US$125m by 2021. EPS reaches $3.62 in the final year of forecast compared to the current $0.65 EPS today. Growth in the bottom line seems to suggest cost cutting activities, as revenues is expected to grow much slower than earnings. Margins is currently sitting at 1.4%, which is expected to expand to 2.7% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Terex, I’ve compiled three essential factors 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 Terex 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 Terex is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Terex? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
