Noble Midstream Partners LP’s (NYSE:NBLX) latest earnings announcement in December 2017 showed that the company benefited from a substantial tailwind, more than doubling its earnings from the prior year. Below is a brief commentary on my key takeaways on how market analysts view Noble Midstream Partners’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for Noble Midstream Partners
Analysts’ outlook for this coming year seems positive, with earnings rising by a robust 37.41%. This growth seems to continue into the following year with rates reaching double digit 93.95% compared to today’s earnings, and finally hitting US$334.89M by 2021.
Although it is useful to understand the growth rate each year relative to today’s level, it may be more beneficial estimating the rate at which the earnings are moving every year, on average. The advantage of this method is that we can get a bigger picture of the direction of Noble Midstream Partners’s earnings trajectory over the long run, irrespective of near term fluctuations, 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 27.73%. This means that, we can anticipate Noble Midstream Partners will grow its earnings by 27.73% every year for the next few years.
For Noble Midstream Partners, I’ve compiled three pertinent aspects 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 NBLX’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 NBLX? 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.