Will Sally Beauty Holdings Inc’s (SBH) Earnings Grow In Next 12 Months?
Analysts covering Sally Beauty Holdings Inc (NYSE:SBH) are predicting double-digit earnings per share growth of 38.52% over the following three years. With the recent EPS being $1.642, expected growth will push the upcoming EPS to $2.274. To assess the reasonability of SBH’s earnings growth per share, we should look at its most recent growth rate delivered. Check out our latest analysis for Sally Beauty Holdings
Exciting times ahead for SBH
Analyst expectation from the stock’s 14 analysts is one of positive sentiment, with earnings estimated to expand from current levels of $1.642 to $2.274 over the next couple of years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 38.52% over the next few years. In the same period revenue is expected to increase from $3,940M to $4,143M and profits (net income) are predicted to slightly grow from $232M to $321M in the next couple of years, growing by 38.52%. Margins are expected to be rather acceptable at 6.36%.
Is the growth built on solid basis?
The past can be an insightful indicator for future performance for a stock. We can determine whether this level of expected growth is sustainable and whether the company continues to go from strength to strength. SBH’s earnings growth the past couple of years was 32.31% which indicates that the company’s past performance will continue to persist into the future. This means SBH has already proven its capacity to grow at a robust rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.
Next Steps:
For SBH, I’ve compiled three essential factors you should further research:
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 SBH 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 SBH is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of SBH? 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.
