Advertisement
Australia markets closed
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • AUD/USD

    0.6511
    -0.0008 (-0.12%)
     
  • OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD

    2,254.80
    +16.40 (+0.73%)
     
  • Bitcoin AUD

    107,362.75
    -784.05 (-0.72%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • AUD/EUR

    0.6043
    +0.0009 (+0.15%)
     
  • AUD/NZD

    1.0904
    +0.0001 (+0.01%)
     
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     

What Should We Expect From Rightmove plc's (LON:RMV) Earnings In The Year Ahead?

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Based on Rightmove plc's (LON:RMV) earnings update in December 2018, the consensus outlook from analysts appear somewhat bearish, with earnings expected to grow by 8.3% in the upcoming year against the higher past 5-year average growth rate of 14%. Currently with trailing-twelve-month earnings of UK£160m, we can expect this to reach UK£174m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Rightmove in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.

View our latest analysis for Rightmove

Exciting times ahead?

The view from 14 analysts over the next three years is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. 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.

LSE:RMV Past and Future Earnings, June 17th 2019
LSE:RMV Past and Future Earnings, June 17th 2019

By 2022, RMV's earnings should reach UK£204m, from current levels of UK£160m, resulting in an annual growth rate of 8.0%. EPS reaches £0.25 in the final year of forecast compared to the current £0.18 EPS today. With a current profit margin of 60%, this movement will result in a margin of 61% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Rightmove, there are three pertinent aspects you should further research:

ADVERTISEMENT
  1. 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.

  2. Valuation: What is Rightmove 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 Rightmove is currently mispriced by the market.

  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Rightmove? 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.