Yahoo Finance What Should We Expect From QBE Insurance Group Limited's (ASX:QBE) Earnings Over The Next Year?
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After QBE Insurance Group Limited's (ASX:QBE) earnings announcement in December 2018, analysts seem cautiously optimistic, with earnings expected to grow by 37% in the upcoming year compared with the past 5-year average growth rate of -17%. By 2020, we can expect QBE Insurance Group’s bottom line to reach US$777m, a jump from the current trailing-twelve-month of US$567m. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for QBE Insurance Group in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
Check out our latest analysis for QBE Insurance Group
How is QBE Insurance Group going to perform in the near future?
The 11 analysts covering QBE view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
By 2022, QBE's earnings should reach US$941m, from current levels of US$567m, resulting in an annual growth rate of 16%. EPS reaches $0.71 in the final year of forecast compared to the current $0.42 EPS today. In 2022, QBE's profit margin will have expanded from 4.6% to 7.6%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For QBE Insurance Group, I've compiled three essential 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 QBE Insurance Group 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 QBE Insurance Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of QBE Insurance Group? 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.
