Yahoo Finance What Do Analysts Think About Credible Labs Inc.'s (ASX:CRD) Earnings Trend?
In December 2018, Credible Labs Inc. (ASX:CRD) released its most recent earnings announcement, which suggested that losses became smaller relative to the prior year's level as a result of recent tailwinds Below, I've presented key growth figures on how market analysts predict Credible Labs's earnings growth outlook over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
See our latest analysis for Credible Labs
Analysts' outlook for the upcoming year seems relatively subdued, with earnings continuing to flop around in the negative territory, generating -US$13.3m in 2020. Moreover, earnings are predicted to fall further in the following year, falling to -US$11.5m in 2021 and -US$6.0m in 2022.
Even though it’s informative knowing the rate of growth year by year relative to today’s figure, it may be more valuable gauging the rate at which the earnings are rising or falling every year, on average. The pro of this technique is that we can get a bigger picture of the direction of Credible Labs's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I've appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 21%. This means, we can expect Credible Labs will grow its earnings by 21% every year for the next few years.
Next Steps:
For Credible Labs, I've compiled three fundamental 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.
Future Earnings: How does CRD's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of CRD? 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.
