Yahoo Finance What Are Analysts Saying About Ryanair Holdings plc’s (ISE:RY4C) Earnings Trend?
In March 2018, Ryanair Holdings plc (ISE:RY4C) released its latest earnings announcement, which signalled that the business experienced a strong tailwind, eventuating to a double-digit earnings growth of 10.21%. Below, I’ve laid out key numbers on how market analysts view Ryanair Holdings’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. View our latest analysis for Ryanair Holdings
Analysts’ expectations for next year seems pessimistic, with earnings declining by -7.69%. But in the following year, there is a complete contrast in performance, with reaching double digit 3.70% compared to today’s level and continues to increase to €1.67B in 2021.
Although it’s informative understanding the growth rate each year relative to today’s value, it may be more insightful evaluating the rate at which the business is moving on average every year. The benefit of this method is that it ignores near term flucuations and accounts for the overarching direction of Ryanair Holdings’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I’ve appended 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 2.42%. This means that, we can assume Ryanair Holdings will grow its earnings by 2.42% every year for the next few years.
Next Steps:
For Ryanair Holdings, there are three key 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 RY4C 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 RY4C is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of RY4C? 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.
