Yahoo Finance What Should We Expect From De La Rue plc's (LON:DLAR) Earnings Over The Next Few Years?
The latest earnings release De La Rue plc's (LON:DLAR) announced in June 2019 suggested that the company faced a major headwind with earnings deteriorating by -80%. Investors may find it useful to understand how market analysts predict De La Rue's earnings growth outlook over the next few 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.
View our latest analysis for De La Rue
Market analysts' prospects for next year seems positive, with earnings climbing by a robust 32%. This growth seems to continue into the following year with rates arriving at double digit 55% compared to today’s earnings, and finally hitting UK£36m by 2022.
While it is helpful to be aware of the growth each year relative to today’s value, it may be more valuable determining the rate at which the earnings are rising or falling on average every year. The pro of this technique is that we can get a better picture of the direction of De La Rue's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute 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 19%. This means, we can anticipate De La Rue will grow its earnings by 19% every year for the next few years.
Next Steps:
For De La Rue, I've put together three important factors you should further research:
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 DLAR 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 DLAR is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of DLAR? 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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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.
