Yahoo Finance What Should We Expect From Temple Webster Group Limited's (ASX:TPW) Earnings Over The Next Few Years?
The most recent earnings update Temple & Webster Group Limited's (ASX:TPW) released in August 2019 indicated that the business finally turned profitable after delivering losses on average over the past couple of years. Below, I've laid out key numbers on how market analysts predict Temple & Webster Group's earnings growth outlook over the next few 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.
See our latest analysis for Temple & Webster Group
Market analysts' prospects for the upcoming year seems pessimistic, with earnings declining by a double-digit -47%. In the next couple of years, earnings will begin to improve, increasing year on year, and generating AU$7.0m by 2022.
Even though it is helpful to be aware of the growth year by year relative to today’s value, it may be more beneficial analyzing the rate at which the company is moving on average every year. The pro of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of Temple & Webster Group's earnings trajectory over time, which may be more relevant for long term investors. To compute 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 28%. This means that, we can assume Temple & Webster Group will grow its earnings by 28% every year for the next couple of years.
Next Steps:
For Temple & Webster Group, I've compiled three key factors you should further examine:
Valuation: What is TPW 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 TPW is currently mispriced by the market.
Future Earnings: How does TPW's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of TPW? 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.
