Yahoo Finance What Do Analysts Think About Atalaya Mining Plc's (LON:ATYM) Earnings Outlook?
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The latest earnings announcement Atalaya Mining Plc (LON:ATYM) released in December 2018 suggested that the business experienced a strong tailwind, leading to a high double-digit earnings growth of 90%. Investors may find it useful to understand how market analysts predict Atalaya Mining's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
View our latest analysis for Atalaya Mining
Analysts' outlook for the upcoming year seems optimistic, with earnings increasing by a robust 21%. This growth seems to continue into the following year with rates reaching double digit 62% compared to today’s earnings, and finally hitting €63m by 2022.
While it’s helpful to be aware of the growth rate year by year relative to today’s level, it may be more valuable to evaluate the rate at which the earnings are moving every year, on average. The advantage of this approach is that we can get a bigger picture of the direction of Atalaya Mining's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I put 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 21%. This means, we can assume Atalaya Mining will grow its earnings by 21% every year for the next couple of years.
Next Steps:
For Atalaya Mining, I've put together three essential 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 ATYM 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 ATYM is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ATYM? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.
