What Should You Know About Ascom Holding AG's (VTX:ASCN) Earnings Trajectory?

Simply Wall St

Ascom Holding AG's (VTX:ASCN) latest earnings announcement in March 2019 revealed that the company endured a immense headwind with earnings declining by -17%. Below, I've laid out key numbers on how market analysts view Ascom Holding's earnings growth outlook over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.

See our latest analysis for Ascom Holding

Analysts' outlook for the upcoming year seems buoyant, with earnings growing by a robust 12%. However, earnings is expected to fall in the following year before rising again to CHF28m in 2022.

SWX:ASCN Past and Future Earnings, August 14th 2019

Even though it is informative understanding the rate of growth each year relative to today’s figure, it may be more beneficial evaluating the rate at which the company is moving every year, on average. The advantage of this technique is that it ignores near term flucuations and accounts for the overarching direction of Ascom Holding's earnings trajectory over time, fluctuate up and down. To calculate this rate, I've appended 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 7.2%. This means, we can anticipate Ascom Holding will grow its earnings by 7.2% every year for the next couple of years.

Next Steps:

For Ascom Holding, I've put together three relevant factors you should look at:

  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 ASCN 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 ASCN is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ASCN? 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.