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In December 2018, Dassault Aviation SA (EPA:AM) released its most recent earnings announcement, which suggested that the business endured a slight headwind with earnings falling from €630m to €573m, a change of -9.1%. Below, I've laid out key numbers on how market analysts view Dassault Aviation's earnings growth trajectory over the next few years and whether the future looks brighter. 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.
View our latest analysis for Dassault Aviation
Market analysts' prospects for next year seems positive, with earnings climbing by a robust 10%. This growth seems to continue into the following year with rates arriving at double digit 11% compared to today’s earnings, and finally hitting €690m by 2022.
Although it is informative knowing the rate of growth each year relative to today’s level, it may be more insightful estimating the rate at which the business is rising or falling on average every year. The benefit of this method is that we can get a better picture of the direction of Dassault Aviation's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate 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 7.3%. This means that, we can assume Dassault Aviation will grow its earnings by 7.3% every year for the next couple of years.
Next Steps:
For Dassault Aviation, I've compiled three fundamental 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 AM'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 AM? 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.