Yahoo Finance How Do Analysts See Lucara Diamond Corp. (TSE:LUC) Performing In The Year Ahead?
In March 2019, Lucara Diamond Corp. (TSE:LUC) released its earnings update. Generally, the consensus outlook from analysts appear fairly confident, with earnings expected to grow by 8.6% in the upcoming year compared with the past 5-year average growth rate of -11%. Currently with trailing-twelve-month earnings of US$12m, we can expect this to reach US$13m by 2020. Below is a brief commentary on the longer term outlook the market has for Lucara Diamond. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
View our latest analysis for Lucara Diamond
How will Lucara Diamond perform in the near future?
The longer term expectations from the 5 analysts of LUC is tilted towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
From the current net income level of US$12m and the final forecast of US$24m by 2022, the annual rate of growth for LUC’s earnings is 34%. EPS reaches $0.13 in the final year of forecast compared to the current $0.030 EPS today. Margins are currently sitting at 6.6%, which is expected to expand to 12% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Lucara Diamond, I've put together three essential factors you should further research:
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.
Valuation: What is Lucara Diamond 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 Lucara Diamond is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Lucara Diamond? 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.
