Looking at Apollo Tourism & Leisure Ltd’s (ASX:ATL) earnings update in June 2018, analysts seem cautiously optimistic, with profits predicted to increase by 21% next year, though this is noticeably lower than the previous 5-year average earnings growth of 44%. Presently, with latest-twelve-month earnings at AU$19m, we should see this growing to AU$23m by 2019. Below is a brief commentary around Apollo Tourism & Leisure’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for Apollo Tourism & Leisure
What can we expect from Apollo Tourism & Leisure in the longer term?
Longer term expectations from the 3 analysts covering ATL’s stock is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of ATL’s earnings growth over these next few years.
By 2021, ATL’s earnings should reach AU$27m, from current levels of AU$19m, resulting in an annual growth rate of 11%. EPS reaches A$0.15 in the final year of forecast compared to the current A$0.11 EPS today. Margins are currently sitting at 5.4%, approximately the same as previous years.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Apollo Tourism & Leisure, there are three fundamental factors you should further research:
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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 Apollo Tourism & Leisure’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 Apollo Tourism & Leisure? 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.