Yahoo Finance What Can We Expect From Brambles Limited’s (ASX:BXB) Earnings Over The Next Year?
Looking at Brambles Limited’s (ASX:BXB) earnings update in June 2018, analyst consensus outlook appear pessimistic, with profits predicted to drop by -15% next year against the past 5-year average growth rate of 2.3%. With trailing-twelve-month net income at current levels of US$774m, the consensus growth rate suggests that earnings will decline to US$658m by 2019. Below is a brief commentary on the longer term outlook the market has for Brambles. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
See our latest analysis for Brambles
How is Brambles going to perform in the near future?
The 12 analysts covering BXB view its longer term outlook with a positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of BXB’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2021, BXB’s earnings should reach US$778m, from current levels of US$774m, resulting in an annual growth rate of 0.7%. This leads to an EPS of $0.49 in the final year of projections relative to the current EPS of $0.49. The bottom-line growth seems to be caused by a higher revenue growth of 4.6% outpacing cost increases. Analysts are predicting this high revenue growth to squeeze profit margins over time, from 13% to 12% by the end of 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Brambles, there are three essential 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 Brambles 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 Brambles is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Brambles? 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.
