Yahoo Finance Will Beacon Lighting Group Limited's (ASX:BLX) Earnings Grow Over The Next Few Years?
The latest earnings announcement Beacon Lighting Group Limited (ASX:BLX) released in August 2019 signalled that the business endured a immense headwind with earnings declining by -18%. Below, I've presented key growth figures on how market analysts view Beacon Lighting Group's earnings growth outlook over the next couple of years and whether the future looks brighter. 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
Market analysts' prospects for the coming year seems rather subdued, with earnings growing by a single digit 7.7%. The growth outlook in the following year seems much more positive with rates generating double digit 13% compared to today’s earnings, and finally hitting AU$19m by 2022.
While it’s useful to understand the growth each year relative to today’s figure, it may be more insightful to analyze the rate at which the business is growing every year, on average. The pro 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 calculate 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 6.0%. This means that, we can expect Beacon Lighting Group will grow its earnings by 6.0% every year for the next few years.
Next Steps:
For Beacon Lighting Group, I've put together three pertinent aspects you should further examine:
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!
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.
