Yahoo Finance What Are Analysts Saying About MTU Aero Engines AG’s (ETR:MTX) Growth?
After MTU Aero Engines AG’s (ETR:MTX) earnings announcement in June 2018, the consensus outlook from analysts appear somewhat bearish, with earnings expected to grow by 7.7% in the upcoming year relative to the higher past 5-year average growth rate of 22%. Currently with trailing-twelve-month earnings of €395m, we can expect this to reach €426m by 2019. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for MTU Aero Engines
How is MTU Aero Engines going to perform in the near future?
The view from 20 analysts over the next three years is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of MTX’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.
This results in an annual growth rate of 5.6% based on the most recent earnings level of €378m to the final forecast of €454m by 2021. This leads to an EPS of €9.17 in the final year of projections relative to the current EPS of €7.35. Earnings growth appears to be a result of a higher revenue growth of 5.9% outpacing cost increases. By the end of 2021, analysts are expecting earnings to outpace revenue, and margins to expand from the current 7.5% to 9.4%.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For MTU Aero Engines, there are three essential aspects 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 MTU Aero Engines 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 MTU Aero Engines is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of MTU Aero Engines? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.