What Should We Expect From Bloomin' Brands, Inc.'s (NASDAQ:BLMN) Earnings In The Next Couple Of Years?
In December 2018, Bloomin' Brands, Inc. (NASDAQ:BLMN) released its latest earnings announcement, which confirmed that the business benefited from a small tailwind, eventuating to a single-digit earnings growth of 5.7%. Below, I've laid out key numbers on how market analysts view Bloomin' Brands'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.
See our latest analysis for Bloomin' Brands
Market analysts' consensus outlook for the upcoming year seems optimistic, with earnings climbing by a robust 24%. This growth seems to continue into the following year with rates arriving at double digit 31% compared to today’s earnings, and finally hitting US$158m by 2022.
Even though it is helpful to be aware of the growth each year relative to today’s value, it may be more valuable to determine the rate at which the business is moving every year, on average. The advantage of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of Bloomin' Brands's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I've inserted 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 12%. This means, we can assume Bloomin' Brands will grow its earnings by 12% every year for the next few years.
Next Steps:
For Bloomin' Brands, I've compiled three fundamental 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 BLMN 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 BLMN is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of BLMN? 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.
