Yahoo Finance Will Xing SE’s (ETR:O1BC) Earnings Grow In The Next 12 Months?
After Xing SE’s (ETR:O1BC) earnings announcement on 31 December 2018, it seems that analyst forecasts are fairly optimistic, as a 23% increase in profits is expected in the upcoming year, though this is noticeably lower than the past 5-year average earnings growth of 28%. Presently, with latest-twelve-month earnings at €30m, we should see this growing to €37m by 2020. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Xing in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Check out our latest analysis for Xing
What can we expect from Xing in the longer term?
Over the next three years, it seems the consensus view of the 5 analysts covering O1BC is skewed towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for O1BC, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
This results in an annual growth rate of 20% based on the most recent earnings level of €30m to the final forecast of €56m by 2022. This leads to an EPS of €10.22 in the final year of projections relative to the current EPS of €5.35. With a current profit margin of 13%, this movement will result in a margin of 16% by 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Xing, there are three pertinent 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 Xing 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 Xing is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Xing? 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.
