Yahoo Finance Will Fuller Smith & Turner PLC’s (LON:FSTA) Earnings Grow Over The Next Year?
Since Fuller Smith & Turner PLC (LON:FSTA) released its earnings in March 2018, analyst consensus outlook appear bearish, with profits predicted to drop by -4.10% next year against the past 5-year average growth rate of 5.74%. Presently, with earnings at UK£35.80m, we should see this fall to UK£34.33m by 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Fuller Smith & Turner in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here. See our latest analysis for Fuller Smith & Turner
Can we expect Fuller Smith & Turner to keep growing?
The longer term view from the 5 analysts covering FSTA is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of FSTA’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2021, FSTA’s earnings should reach UK£38.45m, from current levels of UK£35.80m, resulting in an annual growth rate of 2.82%. EPS reaches £0.70 in the final year of forecast compared to the current £0.65 EPS today. Growth in the bottom line seems to suggest top-line expansion of 3.67%, dropping down to the bottome-line. Analysts are predicting this high revenue growth to squeeze profit margins over time, from 8.87% to 8.47% by the end of 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Fuller Smith & Turner, there are three fundamental 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 Fuller Smith & Turner 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 Fuller Smith & Turner is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Fuller Smith & Turner? 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 pass 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.
