Will YogaWorks, Inc.'s (NASDAQ:YOGA) Earnings Grow In The Next Couple Of Years?
YogaWorks, Inc.'s (NASDAQ:YOGA) released its most recent earnings update in December 2018, which signalled that losses became smaller relative to the prior year's level as a result of recent tailwinds Below, I've laid out key growth figures on how market analysts perceive YogaWorks's earnings growth trajectory over the next couple of 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 YogaWorks
Analysts' outlook for this coming year seems positive, with earnings becoming less negative, reaching -US$14.4m in 2020. However, this earnings level of -US$14.4m is expected to stay relatively stable over the next three years.
Although it’s useful to be aware of the growth each year relative to today’s value, it may be more insightful analyzing the rate at which the company is rising or falling on average every year. The pro of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of YogaWorks's earnings trajectory over time, which may be more relevant for long term investors. 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 38%. This means, we can expect YogaWorks will grow its earnings by 38% every year for the next few years.
Next Steps:
For YogaWorks, there are three pertinent 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.
Future Earnings: How does YOGA'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 YOGA? 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.
