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What Should You Know About The Future Of Beasley Broadcast Group, Inc.'s (NASDAQ:BBGI)?

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As Beasley Broadcast Group, Inc. (NASDAQ:BBGI) announced its earnings release on 31 March 2019, it seems that analyst forecasts are fairly optimistic, with earnings expected to grow by 43% in the upcoming year, though this is relatively lower than the previous 5-year average earnings growth of 49%. With trailing-twelve-month net income at current levels of US$6.5m, we should see this rise to US$9.3m in 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those interested in more of an analysis of the company, you can research its fundamentals here.

Check out our latest analysis for Beasley Broadcast Group

How will Beasley Broadcast Group perform in the near future?

The longer term expectations from the 2 analysts of BBGI 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 get an idea of the overall earnings growth trend for BBGI, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.

NasdaqGM:BBGI Past and Future Earnings, June 3rd 2019
NasdaqGM:BBGI Past and Future Earnings, June 3rd 2019

From the current net income level of US$6.5m and the final forecast of US$11m by 2022, the annual rate of growth for BBGI’s earnings is 15%. This leads to an EPS of $0.68 in the final year of projections relative to the current EPS of $0.24. With a current profit margin of 2.5%, this movement will result in a margin of 4.2% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Beasley Broadcast Group, there are three key aspects you should further examine:

  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 Beasley Broadcast Group 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 Beasley Broadcast Group is currently mispriced by the market.

  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Beasley Broadcast Group? 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.