Yahoo Finance What Should Investors Know About Symantec Corporation’s (NASDAQ:SYMC) Future?
In March 2018, Symantec Corporation (NASDAQ:SYMC) announced its latest earnings update, which suggested that the business turned profitable again after incurring losses in the previous financial year. Investors may find it useful to understand how market analysts predict Symantec’s earnings growth outlook over the next couple of 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. Check out our latest analysis for Symantec
Analysts’ outlook for this coming year seems pessimistic, with earnings declining by a double-digit -100.08%. Beyond this, earnings are expected to continue to be below today’s level, with a decline of -84.20% in 2020, eventually reaching US$181.34m in 2021.
Although it is useful to be aware of the growth each year relative to today’s value, it may be more valuable evaluating the rate at which the company is moving on average every year. The advantage of this approach is that it ignores near term flucuations and accounts for the overarching direction of Symantec’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I put 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 -89.17%. This means that, we can presume Symantec will chip away at a rate of -89.17% every year for the next couple of years.
Next Steps:
For Symantec, I’ve compiled 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 SYMC 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 SYMC is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SYMC? 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.
