Yahoo Finance How Do Analysts See Orange SA. (EPA:ORA) Performing In The Years Ahead?
The most recent earnings announcement Orange SA.’s (ENXTPA:ORA) released in December 2017 confirmed that the business benefited from a significant tailwind, more than doubling its earnings from the prior year. Below, I’ve presented key growth figures on how market analysts view Orange’s earnings growth trajectory over the next few years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. View our latest analysis for Orange
Analysts’ outlook for next year seems positive, with earnings growing by a significant 80.85%. This high growth in earnings is expected to continue, bringing the bottom line up to €3.58B by 2021.
Even though it is helpful to understand the growth rate each year relative to today’s level, it may be more valuable analyzing the rate at which the earnings are growing every year, on average. The pro of this approach is that we can get a better picture of the direction of Orange’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 17.91%. This means that, we can anticipate Orange will grow its earnings by 17.91% every year for the next couple of years.
Next Steps:
For Orange, I’ve compiled three relevant aspects 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 ORA 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 ORA is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ORA? 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.
