What Should Investors Know About The Future Of HSN Inc’s (HSNI) Business?
Analysts covering HSN Inc (NASDAQ:HSNI) are predicting double-digit earnings per share growth of 36.06% over the following three years. At a current EPS of $2.246, this growth rate means shareholders can expect an impending EPS of $3.056. Today I will look at the latest data in order to investigate whether this expected growth rate is plausible. View our latest analysis for HSN
Exciting times ahead for HSNI
HSNI is covered by 4 analysts who by consensus are expecting positive earnings, estimated to rise from current levels of $2.246 to $3.056 in a few years. This indicates a relatively solid earnings per share growth rate of 36.06% over the next few years, which is an optimistic outlook in the near term. In the same period we should see the revenue grow from $3,503M to $3,718M and net income is predicted to escalate from $118M to $160M in the next couple of years, growing by 36.06%. However, margins look rather unappealing at the current levels of revenue and earnings.
Is the growth built on solid basis?
The past can be an insightful indicator for future performance for a stock. We can determine whether this level of expected growth is highly excessive or whether the company has consistently exhibited strength. HSNI’s earnings growth the past couple of years was 25.52% which indicates that the company’s past performance is quite revealing of future outcome. This means HSNI has already proven its capacity to grow at an elevated rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.
Next Steps:
For HSNI, I’ve put together three key aspects you should look at:
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 HSNI 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 HSNI is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of HSNI? 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.
