Yahoo Finance Wizz Air Holdings Plc (LON:WIZZ): What We Can Expect From This Growth Stock
In March 2019, Wizz Air Holdings Plc (LON:WIZZ) announced its earnings update. Overall, analyst consensus outlook appear cautiously optimistic, with profits predicted to increase by 19% next year compared with the past 5-year average growth rate of 17%. With trailing-twelve-month net income at current levels of €295m, we should see this rise to €352m in 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 Wizz Air Holdings
Can we expect Wizz Air Holdings to keep growing?
Over the next three years, it seems the consensus view of the 17 analysts covering WIZZ is skewed towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around 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 WIZZ's earnings growth over these next few years.
This results in an annual growth rate of 17% based on the most recent earnings level of €295m to the final forecast of €542m by 2022. This leads to an EPS of €4.09 in the final year of projections relative to the current EPS of €4.06. In 2022, WIZZ's profit margin will have expanded from 13% to 14%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Wizz Air Holdings, I've compiled three important aspects 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 Wizz Air Holdings 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 Wizz Air Holdings is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Wizz Air Holdings? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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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.
