Yahoo Finance What Can We Expect From Talos Energy Inc.'s (NYSE:TALO) Earnings In The Year Ahead?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Since Talos Energy Inc. (NYSE:TALO) released its earnings in March 2019, it seems that analyst forecasts are fairly bearish, as a 16% fall in profits is expected in the upcoming year against the past 5-year average growth rate of 93%. Currently with a trailing-twelve-month profit of US$222m, the consensus growth rate suggests that earnings will drop to US$186m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Talos Energy in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
Check out our latest analysis for Talos Energy
How is Talos Energy going to perform in the near future?
Longer term expectations from the 6 analysts covering TALO’s stock is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. 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.
This results in an annual growth rate of 24% based on the most recent earnings level of US$222m to the final forecast of US$403m by 2022. However, if we exclude extraordinary items from net income, we see that earnings is projected to fall over time, resulting in an EPS of $4.53 in the final year of forecast compared to the current $4.81 EPS today. In 2022, TALO's profit margin will have expanded from 25% to 36%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Talos Energy, I've put together three key factors you should look at:
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 Talos Energy 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 Talos Energy is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Talos Energy? 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.
