Yahoo Finance Crest Nicholson Holdings plc (LON:CRST): What's The Analyst Consensus Outlook?
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The most recent earnings release Crest Nicholson Holdings plc's (LON:CRST) announced in October 2018 suggested that the business faced a immense headwind with earnings falling by -15%. Below is my commentary, albeit very simple and high-level, on how market analysts perceive Crest Nicholson Holdings's earnings growth trajectory over the next couple of years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
Check out our latest analysis for Crest Nicholson Holdings
Market analysts' prospects for the coming year seems pessimistic, with earnings decreasing by a double-digit -14%. Over the medium term, earnings are predicted to continue to be below today's level, with a decline of -15% in 2021, eventually reaching UK£121m in 2022.
Although it’s useful to be aware of the rate of growth year by year relative to today’s value, it may be more insightful analyzing the rate at which the business is growing on average every year. The benefit of this method is that we can get a bigger picture of the direction of Crest Nicholson Holdings's earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To calculate this rate, I've appended 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 -2.4%. This means, we can anticipate Crest Nicholson Holdings will chip away at a rate of -2.4% every year for the next couple of years.
Next Steps:
For Crest Nicholson Holdings, I've put together three important aspects you should further examine:
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 CRST 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 CRST is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of CRST? 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.
