Yahoo Finance What Should We Expect From Hera S.p.A.'s (BIT:HER) Earnings In The Next 12 Months?
After Hera S.p.A.'s (BIT:HER) earnings announcement on 31 December 2018, it seems that analyst expectations are fairly bearish, with earnings expected to grow by 3.6% in the upcoming year compared with the higher past 5-year average growth rate of 15%. Presently, with latest-twelve-month earnings at €282m, we should see this growing to €292m by 2020. Below is a brief commentary around Hera's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those interested in more of an analysis of the company, you can research its fundamentals here.
See our latest analysis for Hera
What can we expect from Hera in the longer term?
The longer term expectations from the 5 analysts of HER is tilted towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for HER, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
From the current net income level of €282m and the final forecast of €318m by 2022, the annual rate of growth for HER’s earnings is 3.8%. This leads to an EPS of €0.21 in the final year of projections relative to the current EPS of €0.19. Margins are currently sitting at 4.4%, which is expected to expand to 5.0% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Hera, I've compiled three key 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 Hera 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 Hera is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Hera? 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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