Yahoo Finance What Should We Expect From Singapore Airlines Limited’s (SGX:C6L) Earnings In The Next Couple Of Years?
In March 2018, Singapore Airlines Limited (SGX:C6L) released its most recent earnings announcement, which revealed that the company benefited from a substantial tailwind, more than doubling its earnings from the prior year. Today I want to provide a brief commentary on how market analysts perceive Singapore Airlines’s earnings growth trajectory over the next couple of 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. See our latest analysis for Singapore Airlines
Analysts’ expectations for next year seems pessimistic, with earnings falling by -0.38%. But in the following year, there is a complete contrast in performance, with generating double digit 2.22% compared to today’s level and continues to increase to S$966.77M in 2021.
Even though it’s helpful to understand the growth rate year by year relative to today’s value, it may be more insightful determining the rate at which the business is rising or falling every year, on average. The pro of this technique is that we can get a better picture of the direction of Singapore Airlines’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I put 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 2.29%. This means that, we can expect Singapore Airlines will grow its earnings by 2.29% every year for the next couple of years.
Next Steps:
For Singapore Airlines, I’ve put together three relevant factors you should further examine:
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.
Future Earnings: How does C6L’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of C6L? 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.
