Yahoo Finance How Do Analysts See Pier 1 Imports Inc (NYSE:PIR) Performing In The Years Ahead?
Pier 1 Imports Inc’s (NYSE:PIR) latest earnings announcement in March 2018 indicated that the company endured a significant headwind with earnings deteriorating by -61.41%. Below, I’ve laid out key growth figures on how market analysts predict Pier 1 Imports’s earnings growth outlook over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. View out our latest analysis for Pier 1 Imports
Analysts’ expectations for the upcoming year seems pessimistic, with earnings turning into a loss in 2019. Though this loss doesn’t seem to last long as PIR turns profitable again by 2021 with earnings expected to be -US$24.48m.
Although it is informative knowing the growth rate year by year relative to today’s figure, it may be more beneficial analyzing the rate at which the earnings are rising or falling every year, on average. The advantage of this technique is that we can get a bigger picture of the direction of Pier 1 Imports’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I put 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 32.47%. This means that, we can presume Pier 1 Imports will grow its earnings by 32.47% every year for the next few years.
Next Steps:
For Pier 1 Imports, I’ve put together three essential aspects 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 PIR 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 PIR is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of PIR? 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.
