In This Article:
Eurobank Ergasias SA.’s (ATSE:EUROB) latest earnings announcement in December 2017 showed that the company experienced a immense headwind with earnings deteriorating by -25.34%. Below, I’ve presented key growth figures on how market analysts perceive Eurobank Ergasias’s earnings growth outlook 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 Eurobank Ergasias
Market analysts’ consensus outlook for next year seems optimistic, with earnings increasing by a robust 38.18%. This growth seems to continue into the following year with rates reaching double digit 80.96% compared to today’s earnings, and finally hitting €401.72M by 2021.
Even though it’s helpful to understand the growth year by year relative to today’s level, it may be more valuable to determine the rate at which the earnings are growing on average every year. The advantage of this technique is that we can get a better picture of the direction of Eurobank Ergasias’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 26.38%. This means that, we can presume Eurobank Ergasias will grow its earnings by 26.38% every year for the next few years.
Next Steps:
For Eurobank Ergasias, there are three essential 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 EUROB’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 EUROB? 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 pass 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.