Yahoo Finance Sinclair Broadcast Group, Inc. (NASDAQ:SBGI): What Does The Future Look Like?
After Sinclair Broadcast Group, Inc.'s (NASDAQ:SBGI) recent earnings announcement in June 2019, the consensus outlook from analysts appear pessimistic, with earnings expected to decline by 3.3% in the upcoming year against the past 5-year average growth rate of 25%. Currently with a trailing-twelve-month profit of US$341m, the consensus growth rate suggests that earnings will drop to US$330m by 2020. Below is a brief commentary around Sinclair Broadcast Group's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for Sinclair Broadcast Group
Exciting times ahead?
The view from 6 analysts over the next three years is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of SBGI's earnings growth over these next few years.
From the current net income level of US$341m and the final forecast of US$347m by 2022, the annual rate of growth for SBGI’s earnings is 16%. This leads to an EPS of $3.6 in the final year of projections relative to the current EPS of $3.38. However, the near term margins may change heading into 2022, from the current levels of 11% to 9.9%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Sinclair Broadcast Group, I've compiled three fundamental factors you should look at:
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 Sinclair Broadcast Group 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 Sinclair Broadcast Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Sinclair Broadcast Group? 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.
