Yahoo Finance What Can We Expect From Senior plc's (LON:SNR) Earnings Over The Next Year?
Looking at Senior plc's (LON:SNR) earnings update in December 2018, it seems that analyst forecasts are fairly bearish, with profits predicted to drop by 8.8% next year. However, this outlook is not unsubstantiated given the negative past 5-year average earnings growth. With trailing-twelve-month net income at current levels of UK£50m, the consensus growth rate suggests that earnings will decline to UK£46m by 2020. Below is a brief commentary on the longer term outlook the market has for Senior. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for Senior
How is Senior going to perform in the near future?
The longer term view from the 9 analysts covering SNR 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 SNR, 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 UK£50m and the final forecast of UK£74m by 2022, the annual rate of growth for SNR’s earnings is 14%. EPS reaches £0.18 in the final year of forecast compared to the current £0.12 EPS today. In 2022, SNR's profit margin will have expanded from 4.6% to 6.2%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Senior, there are three relevant aspects 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 Senior 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 Senior is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Senior? 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.
