Mauna Kea Technologies SA (EPA:MKEA): What Can We Expect From This High Growth Stock?
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In December 2018, Mauna Kea Technologies SA (EPA:MKEA) released its most recent earnings announcement, which signalled company earnings became less negative compared to the previous year's level as a result of recent tailwinds Below, I've laid out key numbers on how market analysts predict Mauna Kea Technologies's earnings growth outlook over the next couple of 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 Mauna Kea Technologies
Analysts' outlook for the upcoming year seems relatively subdued, with earnings continuing to flop around in the negative territory, reaching -€12.4m in 2020. Furthermore, earnings should fall further in the following year, falling to -€12.1m in 2021 and -€11.9m in 2022.
Even though it’s helpful to be aware of the rate of growth year by year relative to today’s figure, it may be more beneficial estimating the rate at which the earnings are rising or falling on average every year. The benefit of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of Mauna Kea Technologies'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 2.5%. This means that, we can presume Mauna Kea Technologies will grow its earnings by 2.5% every year for the next few years.
Next Steps:
For Mauna Kea Technologies, there are three important aspects 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.
Future Earnings: How does MKEA'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.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of MKEA? 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.
