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After Semiconductor Manufacturing International Corporation's (HKG:981) earnings announcement on 31 December 2018, analyst forecasts seem fairly subdued, with earnings expected to grow by -78% in the upcoming year relative to the higher past 5-year average growth rate of 3.1%. Currently with trailing-twelve-month earnings of US$128m, we can expect this to reach US$28m by 2020. Below is a brief commentary around Semiconductor Manufacturing International's earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
View our latest analysis for Semiconductor Manufacturing International
What can we expect from Semiconductor Manufacturing International in the longer term?
The longer term expectations from the 22 analysts of 981 is tilted towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To understand the overall trajectory of 981's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
This results in an annual growth rate of 11% based on the most recent earnings level of US$128m to the final forecast of US$262m by 2022. EPS reaches $0.052 in the final year of forecast compared to the current $0.026 EPS today. In 2022, 981's profit margin will have expanded from 3.8% to 6.6%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Semiconductor Manufacturing International, I've compiled three relevant aspects 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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Future Earnings: How does Semiconductor Manufacturing International'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 Semiconductor Manufacturing International? 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.