Yahoo Finance What Should We Expect From Wynn Macau, Limited's (HKG:1128) Earnings Over The Next Few Years?
Wynn Macau, Limited's (HKG:1128) released its most recent earnings update in December 2018, which suggested that the business benefited from a sizeable tailwind, leading to a high double-digit earnings growth of 69%. Below, I've presented key growth figures on how market analysts perceive Wynn Macau's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. 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.
Check out our latest analysis for Wynn Macau
Market analysts' consensus outlook for this coming year seems pessimistic, with earnings falling by -1.8%. But in the following year, there is a complete contrast in performance, with reaching double digit 7.9% compared to today’s level and continues to increase to HK$7.5b in 2022.
Although it’s helpful to understand the growth each year relative to today’s figure, it may be more beneficial to estimate the rate at which the earnings are rising or falling every year, on average. The advantage of this technique is that it ignores near term flucuations and accounts for the overarching direction of Wynn Macau'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 analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 5.8%. This means, we can assume Wynn Macau will grow its earnings by 5.8% every year for the next couple of years.
Next Steps:
For Wynn Macau, there are three relevant factors you should further research:
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 1128 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 1128 is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 1128? 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.
