Yahoo Finance What Are Analysts Saying About Beacon Lighting Group Limited’s (ASX:BLX) Earnings Trajectory?
Beacon Lighting Group Limited’s (ASX:BLX) announced its latest earnings update in June 2018, which revealed that the business gained from a robust tailwind, eventuating to a double-digit earnings growth of 18%. Below, I’ve laid out key growth figures on how market analysts perceive Beacon Lighting Group’s earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
Check out our latest analysis for Beacon Lighting Group
Analysts’ outlook for the coming year seems rather muted, with earnings expanding by a single digit 8.1%. The growth outlook in the following year seems much more buoyant with rates reaching double digit 20% compared to today’s earnings, and finally hitting AU$24m by 2021.
Although it’s useful to understand the rate of growth year by year relative to today’s figure, it may be more valuable evaluating the rate at which the earnings are growing on average every year. The benefit of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of Beacon Lighting Group’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 7.3%. This means that, we can anticipate Beacon Lighting Group will grow its earnings by 7.3% every year for the next few years.
Next Steps:
For Beacon Lighting Group, I’ve put together three pertinent aspects you should further research:
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 BLX 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 BLX is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of BLX? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
