Based on Fraport AG's (ETR:FRA) earnings update in March 2019, analyst consensus outlook appear bearish, with profits predicted to drop by 10% next year against the past 5-year average growth rate of 15%. With trailing-twelve-month net income at current levels of €474m, the consensus growth rate suggests that earnings will decline to €426m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those interested in more of an analysis of the company, you can research its fundamentals here.

See our latest analysis for Fraport

How is Fraport going to perform in the near future?

The view from 18 analysts over the next three years is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. 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 €474m and the final forecast of €475m by 2022, the annual rate of growth for FRA’s earnings is 4.4%. This leads to an EPS of €5.15 in the final year of projections relative to the current EPS of €5.13. However, the near term margins may change heading into 2022, from the current levels of 13% to 13%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Fraport, I've put together three fundamental factors you should further research:

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. Future Earnings: How does Fraport's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.

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