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The most recent earnings update BOC Aviation Limited's (HKG:2588) released in December 2018 revealed that the company experienced a small tailwind, leading to a single-digit earnings growth of 5.8%. Below, I've presented key growth figures on how market analysts predict BOC Aviation's earnings growth trajectory over the next few 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.

See our latest analysis for BOC Aviation

Analysts' outlook for this coming year seems optimistic, with earnings expanding by a robust 11%. This growth seems to continue into the following year with rates reaching double digit 23% compared to today’s earnings, and finally hitting US$865m by 2022.

Even though it is informative knowing the growth each year relative to today’s figure, it may be more insightful to estimate the rate at which the company is rising or falling every year, on average. The benefit of this approach is that we can get a bigger picture of the direction of BOC 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've inserted 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 11%. This means that, we can expect BOC Aviation will grow its earnings by 11% every year for the next few years.

Next Steps:

For BOC Aviation, 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 2588 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 2588 is currently mispriced by the market.

3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 2588? 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.