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Looking at Konecranes Plc's (HEL:KCR) earnings update in June 2019, the consensus outlook from analysts appear highly confident, as a 64% rise in profits is expected in the upcoming year, relative to the previous 5-year average growth rate of 17%. Currently with trailing-twelve-month earnings of €102m, we can expect this to reach €167m by 2020. Below is a brief commentary on the longer term outlook the market has for Konecranes. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
See our latest analysis for Konecranes
What can we expect from Konecranes in the longer term?
The longer term view from the 9 analysts covering KCR 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. To get an idea of the overall earnings growth trend for KCR, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
By 2022, KCR's earnings should reach €225m, from current levels of €102m, resulting in an annual growth rate of 24%. This leads to an EPS of €2.94 in the final year of projections relative to the current EPS of €1.29. In 2022, KCR's profit margin will have expanded from 3.2% to 6.6%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Konecranes, I've put together three important aspects 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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Valuation: What is Konecranes 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 Konecranes is currently mispriced by the market.
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Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Konecranes? 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.