Yahoo Finance Will Bayerische Motoren Werke Aktiengesellschaft's (FRA:BMW) Earnings Grow In The Next 12 Months?
Based on Bayerische Motoren Werke Aktiengesellschaft's (FRA:BMW) earnings update in March 2019, analyst forecasts appear to be in-line with historical trends, with earnings growth rate expected to be 6.7% in the upcoming year, relative to the past five-year average earnings growth of 6.9% per year. Presently, with latest-twelve-month earnings at €7.2b, we should see this growing to €7.6b by 2020. 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.
See our latest analysis for Bayerische Motoren Werke
Can we expect Bayerische Motoren Werke to keep growing?
Over the next three years, it seems the consensus view of the 27 analysts covering BMW is skewed towards the 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 BMW'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.
From the current net income level of €7.2b and the final forecast of €8.5b by 2022, the annual rate of growth for BMW’s earnings is 6.7%. However, if we exclude extraordinary items from net income, we see that earnings is projected to fall over time, resulting in an EPS of €9.84 in the final year of forecast compared to the current €10.87 EPS today. Margins are currently sitting at 7.3%, which is expected to expand to 8.3% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Bayerische Motoren Werke, I've put together three relevant aspects you should look at:
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 Bayerische Motoren Werke 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 Bayerische Motoren Werke is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Bayerische Motoren Werke? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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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.
