Yahoo Finance What Should You Know About Shutterstock, Inc.’s (NYSE:SSTK) Growth?
Since Shutterstock, Inc. (NYSE:SSTK) released its earnings in September 2018, it seems that analyst forecasts are fairly pessimistic, as a -4.9% fall in profits is expected in the upcoming year relative to the past 5-year average growth rate of 5.7%. Currently with a trailing-twelve-month profit of US$17m, the consensus growth rate suggests that earnings will drop to US$16m by 2020. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Shutterstock in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
See our latest analysis for Shutterstock
Exciting times ahead?
The 5 analysts covering SSTK 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 get an idea of the overall earnings growth trend for SSTK, 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.
From the current net income level of US$17m and the final forecast of US$24m by 2022, the annual rate of growth for SSTK’s earnings is 15%. This leads to an EPS of $1.68 in the final year of projections relative to the current EPS of $0.48. Margins are currently sitting at 3.0%, which is expected to expand to 3.3% by 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Shutterstock, I’ve compiled three pertinent aspects 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 Shutterstock 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 Shutterstock is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Shutterstock? 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.
