U.S. Markets close in 25 mins

What Should We Expect From V.F. Corporation's (NYSE:VFC) Earnings In The Next 12 Months?

Simply Wall St

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

After V.F. Corporation's (NYSE:VFC) earnings announcement in March 2019, analysts seem fairly confident, as a 6.0% increase in profits is expected in the upcoming year, relative to the past 5-year average growth rate of -1.3%. Presently, with latest-twelve-month earnings at US$1.3b, we should see this growing to US$1.3b by 2020. Below is a brief commentary around V.F's earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

See our latest analysis for V.F

Exciting times ahead?

The longer term view from the 23 analysts covering VFC is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for VFC, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.

NYSE:VFC Past and Future Earnings, June 30th 2019

From the current net income level of US$1.3b and the final forecast of US$1.7b by 2022, the annual rate of growth for VFC’s earnings is 11%. This leads to an EPS of $4.35 in the final year of projections relative to the current EPS of $3.19. With a current profit margin of 9.1%, this movement will result in a margin of 13% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For V.F, I've compiled three relevant aspects you should further research:

  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 V.F 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 V.F is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of V.F? 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.