The latest earnings release TOD'S S.p.A.'s (BIT:TOD) announced in December 2018 indicated that the company faced a significant headwind with earnings deteriorating by -34%. Below, I've laid out key growth figures on how market analysts predict TOD'S's earnings growth outlook over the next few years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.

Check out our latest analysis for TOD'S

Market analysts' prospects for the coming year seems rather subdued, with earnings growing by a single digit 5.0%. The growth outlook in the following year seems much more optimistic with rates generating double digit 25% compared to today’s earnings, and finally hitting €64m by 2022.

While it’s informative knowing the growth each year relative to today’s level, it may be more valuable estimating the rate at which the company is moving every year, on average. The benefit of this method is that we can get a bigger picture of the direction of TOD'S's earnings trajectory over the long run, irrespective of near term fluctuations, 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 10%. This means that, we can assume TOD'S will grow its earnings by 10% every year for the next couple of years.

Next Steps:

For TOD'S, I've put together three pertinent aspects you should further examine:

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 TOD 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 TOD is currently mispriced by the market.

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