Qurate Retail Group Inc (NASDAQ:QRTE.A): Set To Experience A Decrease In Earnings?

Qurate Retail Group Inc’s (NASDAQ:QRTE.A) latest earnings update in December 2017 suggested that the business experienced a substantial tailwind, more than doubling its earnings from the prior year. Below is my commentary, albeit very simple and high-level, on how market analysts view Qurate Retail Group’s earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. See our latest analysis for Qurate Retail Group

Analysts’ expectations for the upcoming year seems pessimistic, with earnings falling by a double-digit -34.64%. Beyond this, earnings are predicted to continue to be below today’s level, with a decline of -29.85% in 2020, eventually reaching US$847.44m in 2021.

NasdaqGS:QRTE.A Future Profit June 21st 18

While it is informative understanding the rate of growth each year relative to today’s figure, it may be more insightful to analyze the rate at which the earnings are rising or falling every year, on average. The benefit of this technique is that it ignores near term flucuations and accounts for the overarching direction of Qurate Retail Group’s earnings trajectory over time, which may be more relevant for long term investors. To calculate 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 -8.62%. This means, we can anticipate Qurate Retail Group will chip away at a rate of -8.62% every year for the next few years.

Next Steps:

For Qurate Retail Group, I’ve put together three important aspects you should further examine:

1. 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.

2. Valuation: What is QRTE.A 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 QRTE.A is currently mispriced by the market.

3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of QRTE.A? 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.