Yahoo Finance How Do Analysts See WSP Global Inc. (TSE:WSP) Performing In The Year Ahead?
Looking at WSP Global Inc.'s (TSE:WSP) earnings update on 31 December 2018, analysts seem fairly confident, with profits predicted to increase by 41% next year against the past 5-year average growth rate of 23%. Currently with trailing-twelve-month earnings of CA$248m, we can expect this to reach CA$350m by 2020. Below is a brief commentary around WSP Global's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for WSP Global
How is WSP Global going to perform in the near future?
The view from 12 analysts over the next three years is one of 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 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.
By 2022, WSP's earnings should reach CA$404m, from current levels of CA$248m, resulting in an annual growth rate of 19%. This leads to an EPS of CA$3.66 in the final year of projections relative to the current EPS of CA$2.38. With a current profit margin of 3.1%, this movement will result in a margin of 5.6% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For WSP Global, I've put together three important factors you should further examine:
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 WSP Global 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 WSP Global is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of WSP Global? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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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.
