In This Article:
The most recent earnings announcement Genertec Universal Medical Group Company Limited's (HKG:2666) released in December 2018 showed that the business benefited from a strong tailwind, eventuating to a double-digit earnings growth of 18%. Below, I've laid out key growth figures on how market analysts view Genertec Universal Medical Group'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 Genertec Universal Medical Group
Market analysts' consensus outlook for this coming year seems positive, with earnings rising by a robust 20%. This growth seems to continue into the following year with rates arriving at double digit 43% compared to today’s earnings, and finally hitting CN¥2.2b by 2022.
While it is informative knowing the growth each year relative to today’s level, it may be more insightful determining the rate at which the earnings are rising or falling every year, on average. The benefit of this technique is that it ignores near term flucuations and accounts for the overarching direction of Genertec Universal Medical Group's earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I've inserted 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 17%. This means, we can presume Genertec Universal Medical Group will grow its earnings by 17% every year for the next couple of years.
Next Steps:
For Genertec Universal Medical Group, there are three important aspects you should further examine:
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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 2666'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 2666? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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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.