Flutter Entertainment PLC (ISE:FLTR): What's The Analyst Consensus Outlook?
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In March 2019, Flutter Entertainment PLC (ISE:FLTR) released its latest earnings announcement, which suggested that the business faced a minor headwind with earnings declining from UK£218m to UK£201m, a change of -7.5%. Below, I've laid out key numbers on how market analysts perceive Flutter Entertainment's earnings growth trajectory over the next few years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
View our latest analysis for Flutter Entertainment
Analysts' outlook for the upcoming year seems rather subdued, with earnings growing by a single digit 4.9%. The growth outlook in the following year seems much more positive with rates generating double digit 30% compared to today’s earnings, and finally hitting UK£301m by 2022.
Even though it’s helpful to understand the growth rate each year relative to today’s value, it may be more insightful gauging the rate at which the earnings are moving on average every year. The pro of this method is that we can get a bigger picture of the direction of Flutter Entertainment's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I've inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 14%. This means that, we can expect Flutter Entertainment will grow its earnings by 14% every year for the next couple of years.
Next Steps:
For Flutter Entertainment, I've put together three fundamental aspects you should further examine:
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 FLTR 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 FLTR is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of FLTR? 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.
