What Should You Know About The Future Of Eutelsat Communications S.A.'s (EPA:ETL)?
In December 2018, Eutelsat Communications S.A. (EPA:ETL) announced its earnings update. Overall, the consensus outlook from analysts appear fairly confident, as a 25% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of -1.5%. With trailing-twelve-month net income at current levels of €290m, we should see this rise to €362m in 2020. Below is a brief commentary around Eutelsat Communications'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 Eutelsat Communications
Exciting times ahead?
Over the next three years, it seems the consensus view of the 14 analysts covering ETL is skewed towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To understand the overall trajectory of ETL'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.
By 2022, ETL's earnings should reach €394m, from current levels of €290m, resulting in an annual growth rate of 5.1%. This leads to an EPS of €1.68 in the final year of projections relative to the current EPS of €1.25. Margins are currently sitting at 21%, which is expected to expand to 28% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Eutelsat Communications, I've put together three essential 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.
Valuation: What is Eutelsat Communications 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 Eutelsat Communications is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Eutelsat Communications? 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.
