Yahoo Finance What Do Analysts Think About The Future Of NetEnt AB (publ)’s (STO:NET B)?
Since NetEnt AB (publ) (STO:NET B) released its earnings in December 2018, the consensus outlook from analysts appear somewhat bearish, with profits predicted to rise by 5.8% next year compared with the higher past 5-year average growth rate of 23%. Presently, with latest-twelve-month earnings at kr577m, we should see this growing to kr611m by 2020. Below is a brief commentary around NetEnt’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for NetEnt
How will NetEnt perform in the near future?
The longer term view from the 6 analysts covering NET B is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for NET B, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
From the current net income level of kr577m and the final forecast of kr746m by 2022, the annual rate of growth for NET B’s earnings is 8.3%. EPS reaches SEK3.1 in the final year of forecast compared to the current SEK2.4 EPS today. In 2022, NET B’s profit margin will have expanded from 32% to 35%.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For NetEnt, I’ve put together three fundamental 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 NetEnt 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 NetEnt is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of NetEnt? 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.
