Yahoo Finance What Do Analysts Think About XLMedia PLC’s (LON:XLM) Earnings Trend?
In December 2017, XLMedia PLC (AIM:XLM) released its most recent earnings announcement, which showed that the business experienced a strong tailwind, leading to a double-digit earnings growth of 26.68%. Below is my commentary, albeit very simple and high-level, on how market analysts perceive XLMedia’s earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. View our latest analysis for XLMedia
Market analysts’ prospects for next year seems buoyant, with earnings rising by a robust 14.50%. This growth seems to continue into the following year with rates arriving at double digit 21.58% compared to today’s earnings, and finally hitting US$36.70M by 2021.
Even though it is useful to understand the growth each year relative to today’s level, it may be more insightful to determine the rate at which the company is growing on average every year. The advantage of this method is that we can get a better picture of the direction of XLMedia’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. 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 6.90%. This means that, we can expect XLMedia will grow its earnings by 6.90% every year for the next few years.
Next Steps:
For XLMedia, I’ve compiled 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 XLM 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 XLM is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of XLM? 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.
