Yahoo Finance What Should We Expect From British Land Company Plc’s (LON:BLND) Earnings In The Next 12 Months?
After British Land Company Plc’s (LSE:BLND) earnings announcement in March 2018, the consensus outlook from analysts appear fairly confident, with earnings expected to grow by 12.89% in the upcoming year relative to the past 5-year average growth rate of 1.64%. By 2019, we can expect British Land’s bottom line to reach UK£556.55M, a jump from the current UK£493.00M. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for British Land in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here. Check out our latest analysis for British Land
How is British Land going to perform in the near future?
The longer term view from the 11 analysts covering BLND 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. To understand the overall trajectory of BLND’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.
This results in an annual growth rate of 6.79% based on the most recent earnings level of UK£493.00M to the final forecast of UK£489.57M by 2021. However, if we exclude extraordinary items from net income, we see that earnings is projected to fall over time, resulting in an EPS of £0.36 in the final year of forecast compared to the current £0.49 EPS today. The main reason for growth is a result of cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. Margins is currently sitting at 66.53%, which is expected to expand to 76.54% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For British Land, I’ve put together three important 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 British Land 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 British Land is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of British Land? 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.
