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The latest earnings announcement Catena Media p.l.c (STO:CTM) released in December 2018 indicated that the company benefited from a strong tailwind, eventuating to a double-digit earnings growth of 46%. Below, I've presented key growth figures on how market analysts perceive Catena Media p.l.c's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. 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 Catena Media p.l.c
Analysts' expectations for the coming year seems pessimistic, with earnings declining by a double-digit -16%. However, the next few years show a contrast, with earnings growth becoming positive in 2021, with the bottom line increasing to €39m in 2022.
Although it is useful to be aware of the growth year by year relative to today’s value, it may be more insightful estimating the rate at which the company is rising or falling every year, on average. The pro of this approach is that it ignores near term flucuations and accounts for the overarching direction of Catena Media p.l.c's earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I put 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 8.2%. This means, we can expect Catena Media p.l.c will grow its earnings by 8.2% every year for the next couple of years.
Next Steps:
For Catena Media p.l.c, I've put together three essential 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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Valuation: What is CTM 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 CTM is currently mispriced by the market.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of CTM? 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.