Österreichische Post AG's (VIE:POST) most recent earnings announcement in December 2018 showed that the company experienced a major headwind with earnings falling by -13%. Below is my commentary, albeit very simple and high-level, on how market analysts view Österreichische Post's earnings growth outlook over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Market analysts' consensus outlook for the coming year seems positive, with earnings climbing by a robust 12%. This growth seems to continue into the following year with rates reaching double digit 13% compared to today’s earnings, and finally hitting €163m by 2022.
Although it is informative understanding the growth each year relative to today’s figure, it may be more insightful gauging the rate at which the company is rising or falling on average every year. The pro of this method is that it ignores near term flucuations and accounts for the overarching direction of Österreichische Post's earnings trajectory over time, which may be more relevant for long term investors. To calculate 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 4.0%. This means, we can presume Österreichische Post will grow its earnings by 4.0% every year for the next few years.
For Österreichische Post, I've compiled three essential factors you should further research:
- 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 POST 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 POST is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of POST? 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 firstname.lastname@example.org. 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.