Yahoo Finance What Should We Expect From Informa plc’s (LON:INF) Earnings Over The Next Year?
Since Informa plc (LON:INF) released its earnings in June 2018, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 33.6% next year compared with the past 5-year average growth rate of 23.2%. With trailing-twelve-month net income at current levels of UK£284.1m, we should see this rise to UK£379.4m in 2019. 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.
Check out our latest analysis for Informa
Can we expect Informa to keep growing?
Longer term expectations from the 13 analysts covering INF’s stock is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for INF, 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.
This results in an annual growth rate of 20.4% based on the most recent earnings level of UK£311.3m to the final forecast of UK£596.9m by 2021. This leads to an EPS of £0.43 in the final year of projections relative to the current EPS of £0.38. Earnings growth appears to be a result of cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. Margins is currently sitting at 17.7%, which is expected to expand to 20.4% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Informa, there are three key 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 Informa 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 Informa is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Informa? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
