Yahoo Finance Will Bharti Airtel Limited’s (NSE:BHARTIARTL) Earnings Grow In The Year Ahead?
After Bharti Airtel Limited’s (NSE:BHARTIARTL) earnings announcement in March 2018, the consensus outlook from analysts appear highly confident, with earnings expected to grow by a high double-digit of 63.53% in the upcoming year, compared with the historical 5-year average growth rate of -2.29%. By 2019, we can expect Bharti Airtel’s bottom line to reach ₹17.97b, a jump from the current ₹10.99b. I will provide a brief commentary around the figures and analyst expectations in the near term. For those interested in more of an analysis of the company, you can research its fundamentals here. Check out our latest analysis for Bharti Airtel
How will Bharti Airtel perform in the near future?
The longer term view from the 19 analysts covering BHARTIARTL is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of BHARTIARTL’s earnings growth over these next few years.
This results in an annual growth rate of 47.76% based on the most recent earnings level of ₹10.99b to the final forecast of ₹66.08b by 2021. EPS reaches ₹17.45 in the final year of forecast compared to the current ₹2.75 EPS today. The main reason for growth is a result of cost cutting activities, as revenues is expected to grow much slower than earnings. With a current profit margin of 1.31%, this movement will result in a margin of 6.20% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Bharti Airtel, I’ve compiled three essential factors 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 Bharti Airtel 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 Bharti Airtel is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Bharti Airtel? 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.
