Yahoo Finance Will Delphi Technologies PLC’s (NYSE:DLPH) Earnings Grow Over The Next Year?
Based on Delphi Technologies PLC’s (NYSE:DLPH) earnings update in June 2018, it seems that analyst forecasts are fairly optimistic, with earnings expected to grow by 26.0% in the upcoming year against the past 5-year average growth rate of 18.9%. Presently, with latest-twelve-month earnings at US$318.0m, we should see this growing to US$400.8m by 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Delphi Technologies in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for Delphi Technologies
Can we expect Delphi Technologies to keep growing?
Longer term expectations from the 15 analysts covering DLPH’s stock is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of DLPH’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.
This results in an annual growth rate of 9.7% based on the most recent earnings level of US$285.0m to the final forecast of US$429.2m by 2021. This leads to an EPS of $5.32 in the final year of projections relative to the current EPS of $3.22. The primary reason for earnings growth is due to cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. Margins is currently sitting at 5.9%, which is expected to expand to 8.0% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Delphi Technologies, there are three essential 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 Delphi Technologies 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 Delphi Technologies is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Delphi Technologies? 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.
