Looking at La Doria SpA’s (BIT:LD) earnings update in June 2018, the consensus outlook from analysts appear somewhat bearish, as a 2.7% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 14.1%. By 2019, we can expect La Doria’s bottom line to reach €32.1m, a jump from the current trailing-twelve-month €31.2m. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for La Doria
What can we expect from La Doria in the longer term?
The view from 3 analysts over the next three years is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of LD’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
This results in an annual growth rate of 9.1% based on the most recent earnings level of €30.4m to the final forecast of €38.5m by 2021. This leads to an EPS of €1.29 in the final year of projections relative to the current EPS of €0.98. Growth in earnings appears to be a result of reduction in costs rather than purely top-line expansion as earnings is increasing at a faster rate. With a current profit margin of 4.5%, this movement will result in a margin of 5.2% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For La Doria, I’ve compiled three essential aspects you should further examine:
-
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.
-
Valuation: What is La Doria 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 La Doria is currently mispriced by the market.
-
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of La Doria? 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.