What Do Analysts Think About Wirtualna Polska Holding S.A.'s (WSE:WPL) Future?

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As Wirtualna Polska Holding S.A. (WSE:WPL) released its earnings announcement on 31 March 2019, it seems that analyst forecasts are fairly optimistic, with profits predicted to increase by 20% next year, though this is relatively lower than the past 5-year average earnings growth of 48%. By 2020, we can expect Wirtualna Polska Holding’s bottom line to reach zł89m, a jump from the current trailing-twelve-month of zł74m. Below is a brief commentary around Wirtualna Polska Holding's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those interested in more of an analysis of the company, you can research its fundamentals here.

See our latest analysis for Wirtualna Polska Holding

How will Wirtualna Polska Holding perform in the near future?

The 7 analysts covering WPL view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for WPL, 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.

WSE:WPL Past and Future Earnings, June 16th 2019
WSE:WPL Past and Future Earnings, June 16th 2019

By 2022, WPL's earnings should reach zł119m, from current levels of zł74m, resulting in an annual growth rate of 13%. EPS reaches PLN4.46 in the final year of forecast compared to the current PLN2.56 EPS today. Margins are currently sitting at 13%, which is expected to expand to 15% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Wirtualna Polska Holding, there are three key factors 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 Wirtualna Polska Holding 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 Wirtualna Polska Holding is currently mispriced by the market.

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