Yahoo Finance What Should We Expect From Seven West Media Limited’s (ASX:SWM) Earnings Over The Next Year?
After Seven West Media Limited’s (ASX:SWM) earnings announcement in June 2018, analysts seem fairly confident, with profits predicted to increase by 15.9% next year against the past 5-year average growth rate of -23.3%. Currently with trailing-twelve-month earnings of AU$134.9m, we can expect this to reach AU$156.4m by 2019. Below is a brief commentary around Seven West Media’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for Seven West Media
Can we expect Seven West Media to keep growing?
The view from 8 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 get an idea of the overall earnings growth trend for SWM, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
By 2021, SWM’s earnings should reach AU$148.4m, from current levels of AU$134.9m, resulting in an annual growth rate of 2.9%. This leads to an EPS of A$0.098 in the final year of projections relative to the current EPS of A$0.089. Earnings growth appears to be a result of cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. With a current profit margin of 8.3%, this movement will result in a margin of 9.2% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Seven West Media, I’ve compiled three essential factors 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 Seven West Media 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 Seven West Media is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Seven West Media? 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.
