What Should You Know About The Future Of Informa plc's (LON:INF)?
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Informa plc's (LON:INF) most recent earnings announcement in December 2018 indicated that the business experienced a major headwind with earnings declining by -33%. Below, I've laid out key growth figures on how market analysts predict Informa's earnings growth outlook over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
View our latest analysis for Informa
Market analysts' prospects for the upcoming year seems optimistic, with earnings increasing by a significant 99%. This strong growth in earnings is expected to continue, bringing the bottom line up to UK£532m by 2022.
Although it is informative knowing the growth each year relative to today’s figure, it may be more valuable analyzing the rate at which the company is moving every year, on average. The pro of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of Informa's earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I put 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 22%. This means, we can expect Informa will grow its earnings by 22% every year for the next couple of years.
Next Steps:
For Informa, I've compiled three fundamental 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 INF 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 INF is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of INF? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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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.
