The most recent earnings release Entrée Resources Ltd’s (TSX:ETG) announced in December 2017 indicated company earnings became less negative compared to the previous year’s level as a result of recent tailwinds Below, I’ve laid out key numbers on how market analysts perceive Entrée Resources’s earnings growth outlook over the next few 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. View our latest analysis for Entrée Resources
Analysts’ expectations for the coming year seems optimistic, with earnings becoming less negative, generating -US$730.00K in 2019. However, this positive earnings level of -US$730.00K is expected to remain flat over the next three years.
Even though it’s useful to understand the growth year by year relative to today’s value, it may be more valuable to gauge the rate at which the business is growing on average every year. The pro of this method is that we can get a better picture of the direction of Entrée Resources’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 analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 59.20%. This means that, we can anticipate Entrée Resources will grow its earnings by 59.20% every year for the next couple of years.
For Entrée Resources, I’ve compiled three pertinent factors 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.
- Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for ETG’s future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ETG? 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.