Quabit Inmobiliaria SA.’s (BME:QBT) latest earnings announcement in December 2017 confirmed that the company gained from a large tailwind, leading to a high double-digit earnings growth of 79.14%. Today I want to provide a brief commentary on how market analysts perceive Quabit Inmobiliaria’s earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for Quabit Inmobiliaria
Market analysts’ prospects for next year seems pessimistic, with earnings turning into a loss in 2019. However, QBT isn’t in the red zone for long, with earnings predicted to bounce bank the following year, arriving at €2.00M and eventually climbing to €32.92M in 2021.
Even though it’s informative knowing the growth rate year by year relative to today’s level, it may be more beneficial gauging the rate at which the business is growing every year, on average. The advantage of this method is that it ignores near term flucuations and accounts for the overarching direction of Quabit Inmobiliaria’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 the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 49.04%. This means that, we can assume Quabit Inmobiliaria will grow its earnings by 49.04% every year for the next couple of years.
Next Steps:
For Quabit Inmobiliaria, I’ve compiled three key factors you should further research:
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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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Future Earnings: How does QBT’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.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of QBT? 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 pass 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.