What Should Investors Know About The Future Of Jones Energy Inc’s (NYSE:JONE)?
Since Jones Energy Inc (NYSE:JONE) released its earnings in December 2017, it seems that analyst forecasts are fairly optimistic, with earnings expected to grow by 3.62% in the upcoming year relative to the past 5-year average growth rate of -52.37%. By 2019, we can expect Jones Energy’s bottom line to reach -US$113.38M, a jump from the current -US$109.42M. Below is a brief commentary around Jones Energy’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here. View our latest analysis for Jones Energy
What can we expect from Jones Energy in the longer term?
The longer term expectations from the 5 analysts of JONE is tilted towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of JONE’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
This results in an annual growth rate of 9.70% based on the most recent earnings level of -US$109.42M to the final forecast of -US$130.83M by 2021. This leads to an EPS of $-0.82 in the final year of projections relative to the current EPS of $-1.51. The primary reason for earnings growth is due to a higher revenue growth of 13.12% outpacing cost increases. As revenues is expected to outpace earnings, analysts expect margins to contract from the current -58.02% to -50.90% by the end of 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Jones Energy, I’ve put together three key factors 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.
Future Earnings: How does Jones Energy’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Jones Energy? 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.
