Osirium Technologies PLC's (LON:OSI) latest earnings announcement in May 2019 revealed that losses became smaller relative to the prior year's level - great news for investors Below, I've laid out key numbers on how market analysts perceive Osirium Technologies's earnings growth trajectory 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.
Market analysts' prospects for next year seems relatively muted, with earnings continuing to flop around in the negative territory, arriving at -UK£2.1m in 2020. Moreover, earnings are predicted to fall further in the following year, dwindling to -UK£2.0m in 2021 and -UK£1.0m in 2022.
Although it is informative understanding the growth year by year relative to today’s level, it may be more beneficial to gauge the rate at which the earnings are moving every year, on average. The pro of this approach is that it ignores near term flucuations and accounts for the overarching direction of Osirium Technologies'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 18%. This means, we can anticipate Osirium Technologies will grow its earnings by 18% every year for the next few years.
For Osirium Technologies, there are three relevant 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.
- Future Earnings: How does OSI's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of OSI? 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 firstname.lastname@example.org. 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.