What Should Investors Know About DHT Holdings Inc’s (NYSE:DHT) Earnings Outlook?
The most recent earnings update DHT Holdings Inc’s (NYSE:DHT) released in December 2017 revealed that the company endured a significant headwind with earnings falling by -28.70%. Below, I’ve laid out key growth figures on how market analysts perceive DHT Holdings’s earnings growth outlook over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for DHT Holdings
Market analysts’ prospects for this coming year seems pessimistic, with earnings turning into a loss in 2019. However, DHT isn’t in the red zone for long, with earnings predicted to bounce bank the following year, arriving at US$16.76M and eventually climbing to US$91.41M in 2021.
Even though it’s useful to be aware of the growth rate year by year relative to today’s figure, it may be more valuable to estimate the rate at which the business is rising or falling on average every year. The benefit of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of DHT Holdings’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 the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 71.30%. This means that, we can presume DHT Holdings will grow its earnings by 71.30% every year for the next few years.
Next Steps:
For DHT Holdings, there are three pertinent 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 DHT 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 DHT is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of DHT? 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 pass 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.
