Yahoo Finance What Should You Know About The Future Of LiveTiles Limited’s (ASX:LVT)?
In June 2018, LiveTiles Limited (ASX:LVT) released its latest earnings announcement, which signalled company earnings became less negative compared to the previous year’s level as a result of recent tailwinds Investors may find it useful to understand how market analysts perceive LiveTiles’s earnings growth trajectory over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Check out our latest analysis for LiveTiles
Analysts’ outlook for the upcoming year seems pessimistic, with earnings becoming even more negative, arriving at -AU$30.5m in 2019. Furthermore, earnings are predicted to fall off in the following year, decreasing to -AU$14.3m in 2020 and -AU$9.7m in 2021.
Even though it’s informative understanding the rate of growth year by year relative to today’s level, it may be more insightful to gauge the rate at which the company is rising or falling on average every year. The advantage of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of LiveTiles’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I’ve inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 24.2%. This means, we can expect LiveTiles will grow its earnings by 24.2% every year for the next couple of years.
Next Steps:
For LiveTiles, I’ve compiled three pertinent 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.
Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for LVT’s future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of LVT? 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.
