Yahoo Finance What Should We Expect From Tritax Big Box REIT plc's (LON:BBOX) Earnings Over The Next Few Years?
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In December 2018, Tritax Big Box REIT plc (LON:BBOX) released its latest earnings announcement, which suggested that the company benefited from a slight tailwind, leading to a single-digit earnings growth of 1.9%. Below is a brief commentary on my key takeaways on how market analysts perceive Tritax Big Box REIT's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
See our latest analysis for Tritax Big Box REIT
Market analysts' consensus outlook for next year seems rather muted, with earnings increasing by a single digit 6.4%. However, the following year seems to show a contrast, with earnings reducing by -7.4%. This volatility continues into the final year of forecast, with earnings reaching UK£227m.
Even though it is useful to be aware of the rate of growth each year relative to today’s figure, it may be more beneficial determining the rate at which the earnings are growing every year, on average. The benefit of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of Tritax Big Box REIT's earnings trajectory over time, fluctuate up and down. 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 -4.8%. This means that, we can presume Tritax Big Box REIT will chip away at a rate of -4.8% every year for the next few years.
Next Steps:
For Tritax Big Box REIT, I've compiled three relevant 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 BBOX 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 BBOX is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of BBOX? 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.
