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I.T Limited's (HKG:999) released its most recent earnings update in May 2019, which showed that the business experienced a slight tailwind, leading to a single-digit earnings growth of 2.8%. Below, I've laid out key numbers on how market analysts predict I.T's earnings growth trajectory over the next couple of 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 I.T

Analysts' outlook for the upcoming year seems positive, with earnings climbing by a robust 18%. This growth seems to continue into the following year with rates arriving at double digit 57% compared to today’s earnings, and finally hitting HK$696m by 2022.

While it is informative understanding the rate of growth each year relative to today’s value, it may be more insightful analyzing the rate at which the earnings are rising or falling every year, on average. The pro of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of I.T's earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I've inserted 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 16%. This means that, we can anticipate I.T will grow its earnings by 16% every year for the next couple of years.

Next Steps:

For I.T, I've put together three important factors you should further examine:

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 999 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 999 is currently mispriced by the market.

3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 999? 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.