The latest earnings release The First of Long Island Corporation's (NASDAQ:FLIC) announced in December 2018 confirmed that the company experienced a robust tailwind, leading to a double-digit earnings growth of 18%. Investors may find it useful to understand how market analysts view First of Long Island's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Market analysts' prospects for next year seems rather subdued, with earnings growing by a single digit 7.9%. The following year doesn't look much more exciting, though earnings does reach US$49m in 2022.
While it’s informative understanding the growth each year relative to today’s figure, it may be more insightful to estimate the rate at which the business is moving every year, on average. The benefit of this technique is that it ignores near term flucuations and accounts for the overarching direction of First of Long Island's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I've inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 5.0%. This means that, we can presume First of Long Island will grow its earnings by 5.0% every year for the next couple of years.
For First of Long Island, I've put together three relevant aspects you should look at:
- 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 FLIC 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 FLIC is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of FLIC? 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 firstname.lastname@example.org. 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.