Yahoo Finance Will RELX PLC's (LON:REL) Earnings Grow In The Next 12 Months?
Since RELX PLC (LON:REL) released its earnings in December 2018, analysts seem cautiously bearish, with profits predicted to rise by 8.0% next year compared with the higher past 5-year average growth rate of 11%. Currently with trailing-twelve-month earnings of UK£1.4b, we can expect this to reach UK£1.5b by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
View our latest analysis for RELX
Exciting times ahead?
The 18 analysts covering REL view its longer term outlook with a positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
This results in an annual growth rate of 7.0% based on the most recent earnings level of UK£1.4b to the final forecast of UK£1.8b by 2022. EPS reaches £0.90 in the final year of forecast compared to the current £0.72 EPS today. Margins are currently sitting at 19%, which is expected to expand to 21% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For RELX, I've compiled three pertinent 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 RELX 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 RELX is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of RELX? 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 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.
