Will Tellurian Inc.'s (NASDAQ:TELL) Earnings Grow In The Next Couple Of Years?
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Tellurian Inc.'s (NASDAQ:TELL) latest earnings announcement in December 2018 showed that losses became smaller relative to the prior year's level as a result of recent tailwinds Below is a brief commentary on my key takeaways on how market analysts view Tellurian's earnings growth trajectory over the next couple of years and whether the future looks brighter. 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.
See our latest analysis for Tellurian
Analysts' outlook for next year seems pessimistic, with earnings becoming even more negative, reaching -US$157.8m in 2020. However, earnings should move into an upward direction, generating -US$182.4m in 2021, and -US$194.6m in 2022.
Even though it is informative knowing the growth rate year by year relative to today’s value, it may be more valuable estimating the rate at which the business is moving every year, on average. The advantage of this method is that we can get a better picture of the direction of Tellurian's earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To compute this rate, I've inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is -9.3%. This means, we can assume Tellurian will chip away at a rate of -9.3% every year for the next few years.
Next Steps:
For Tellurian, I've put together three key factors you should further examine:
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.
Future Earnings: How does TELL's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of TELL? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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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.
