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Based on Terna Energy Societe Anonyme Commercial Technical Company SA’s (ATH:TENERGY) earnings update in December 2017, analyst consensus outlook appear cautiously optimistic, as upcoming earnings growth is expected to be 26.2% next year, similar to the range of average earnings growth for the past five years of 28.3% per year. Presently, with latest-twelve-month earnings at €37.1m, we should see this growing to €46.8m by 2019. Below is a brief commentary around Terna Energy Societe Anonyme Commercial Technical’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for Terna Energy Societe Anonyme Commercial Technical
What can we expect from Terna Energy Societe Anonyme Commercial Technical in the longer term?
Longer term expectations from the 4 analysts covering TENERGY’s stock is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for TENERGY, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
From the current net income level of €37.1m and the final forecast of €62.8m by 2021, the annual rate of growth for TENERGY’s earnings is 16.7%. EPS reaches €0.55 in the final year of forecast compared to the current €0.35 EPS today. Growth in the bottom line seems to suggest cost cutting activities, as revenues is expected to grow much slower than earnings. With a current profit margin of 13.4%, this movement will result in a margin of 19.8% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Terna Energy Societe Anonyme Commercial Technical, I’ve put together three important aspects you should look at:
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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.
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Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for Terna Energy Societe Anonyme Commercial Technical’s future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
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Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Terna Energy Societe Anonyme Commercial Technical? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.