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The latest earnings announcement Fiskars Oyj Abp (HEL:FSKRS) released in December 2018 showed that the business faced a major headwind with earnings declining by -51%. Below, I’ve laid out key growth figures on how market analysts view Fiskars Oyj Abp’s earnings growth trajectory over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.

View our latest analysis for Fiskars Oyj Abp

Market analysts’ consensus outlook for this coming year seems pessimistic, with earnings decreasing by a double-digit -15%. However, the following year shows a contrast, with earnings growth becoming positive at 2.5% compared to today’s earnings level. Earnings are then expected to decline to €72m in 2022.

Even though it is helpful to understand the rate of growth each year relative to today’s figure, it may be more valuable gauging the rate at which the business is rising or falling on average every year. The advantage of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of Fiskars Oyj Abp’s earnings trajectory over time, be more volatile. To compute this rate, I put 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 0.9%. This means that, we can expect Fiskars Oyj Abp will grow its earnings by 0.9% every year for the next few years.

Next Steps:

For Fiskars Oyj Abp, I’ve put together three important factors you should further research:

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 FSKRS 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 FSKRS is currently mispriced by the market.

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