What Should We Expect From Demant A/S's (CPH:DEMANT) Earnings In The Next 12 Months?
After Demant A/S's (CPH:DEMANT) earnings announcement in December 2018, analyst consensus outlook appear cautiously optimistic, with earnings expected to grow by 14% in the upcoming year against the past 5-year average growth rate of 8.4%. Currently with trailing-twelve-month earnings of ø1.8b, we can expect this to reach ø2.1b by 2020. Below is a brief commentary around Demant's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
See our latest analysis for Demant
What can we expect from Demant in the longer term?
The longer term view from the 20 analysts covering DEMANT is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
From the current net income level of ø1.8b and the final forecast of ø2.5b by 2022, the annual rate of growth for DEMANT’s earnings is 9.5%. EPS reaches DKK10.87 in the final year of forecast compared to the current DKK7.32 EPS today. Margins are currently sitting at 13%, which is expected to expand to 14% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Demant, I've put together three essential factors you should look at:
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 Demant 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 Demant is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Demant? 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.
