In December 2018, Event Hospitality & Entertainment Limited (ASX:EVT) released its earnings update. Generally, the consensus outlook from analysts appear fairly confident, as a 6.4% increase in profits is expected in the upcoming year, relative to the past 5-year average growth rate of 5.6%. Presently, with latest-twelve-month earnings at AU$112m, we should see this growing to AU$119m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Event Hospitality & Entertainment in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.

See our latest analysis for Event Hospitality & Entertainment

How is Event Hospitality & Entertainment going to perform in the near future?

The 5 analysts covering EVT view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around 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 EVT's earnings growth over these next few years.

This results in an annual growth rate of 0.2% based on the most recent earnings level of AU$112m to the final forecast of AU$117m by 2022. EPS reaches A$0.76 in the final year of forecast compared to the current A$0.70 EPS today. In 2022, EVT's profit margin will have expanded from 8.8% to 10%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Event Hospitality & Entertainment, there are three relevant 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 Event Hospitality & Entertainment 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 Event Hospitality & Entertainment is currently mispriced by the market.

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