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Vincit Oyj's (HEL:VINCIT) most recent earnings update in December 2018 showed that the business benefited from a major tailwind, more than doubling its earnings from the prior year. Below, I've laid out key numbers on how market analysts predict Vincit Oyj's earnings growth outlook over the next few years and whether the future looks even brighter than the past. 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.
See our latest analysis for Vincit Oyj
Market analysts' prospects for next year seems pessimistic, with earnings declining by a double-digit -40%. Beyond this, earnings should continue to be below today's level, with a decline of -26% in 2021, eventually reaching €4.7m in 2022.
Even though it’s useful to understand the growth rate year by year relative to today’s level, it may be more insightful evaluating the rate at which the business is moving on average every year. The benefit of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of Vincit Oyj's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I've inserted 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 0.6%. This means, we can expect Vincit Oyj will grow its earnings by 0.6% every year for the next couple of years.
Next Steps:
For Vincit Oyj, I've compiled three pertinent factors you should look at:
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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 VINCIT 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 VINCIT 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 VINCIT? 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.