Yahoo Finance What Should We Expect From Trevali Mining Corporation’s (TSE:TV) Earnings Over The Next Year?
Based on Trevali Mining Corporation’s (TSE:TV) earnings update in June 2018, the consensus outlook from analysts appear highly confident, as earnings are expected to increase by more than twofold next year, against the historical 5-year average growth rate of 46.2%. By 2019, we can expect Trevali Mining’s bottom line to reach US$137.6m, a jump from the current trailing-twelve-month US$63.7m. Below is a brief commentary on the longer term outlook the market has for Trevali Mining. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
Check out our latest analysis for Trevali Mining
How will Trevali Mining perform in the near future?
The longer term view from the 9 analysts covering TV is one of negative 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 TV’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.
By 2021, TV’s earnings should reach US$30.6m, from current levels of US$18.8m, resulting in an annual growth rate of -8.3%. However, if we exclude extraordinary items from earnings, we see that the profits is predicted to rise over time, resulting in an EPS of $0.12 in the final year of forecast compared to the current $0.034 EPS today. Earnings decline appears to be a result of revenue declining at an average annual rate of -4.7%. With margins currently sitting at 5.7%, this fall in revenues is expected to cause margin expansion to 9.6% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Trevali Mining, there are three fundamental 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 Trevali Mining 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 Trevali Mining is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Trevali Mining? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
