Looking at JLT Mobile Computers AB (publ)’s (STO:JLT) earnings update in December 2018,
analysts seem cautiously bearish,
with earnings expected to grow by 12% in the upcoming year
compared with
the higher past 5-year average growth rate of 23%.
Presently, with latest-twelve-month earnings at kr9.8m, we should see this growing to kr11m by 2020.
In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for JLT Mobile Computers in the longer term.
For those interested in more of an analysis of the company, you can
research its fundamentals here.



See our latest analysis for JLT Mobile Computers

Exciting times ahead?

The longer term expectations from the 1 analysts of JLT is tilted towards the
positive
sentiment.
Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this.
To get an idea of the overall earnings growth trend for JLT, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.


OM:JLT Past and Future Earnings, March 16th 2019
OM:JLT Past and Future Earnings, March 16th 2019

This results in an annual growth rate of 2.5% based on the most recent earnings level of kr9.8m to the final forecast of kr11m by 2022.
This leads to an EPS of SEK0.39 in the final year of projections relative to the current EPS of
SEK0.35.
Analysts are predicting this high revenue growth to squeeze profit margins over time, from 7.5% to 7.3% by the end of 2022.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For JLT Mobile Computers,
there are
three
pertinent
factors
you should
look at:

  1. 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.
  2. Valuation: What is JLT Mobile Computers 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 JLT Mobile Computers is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of JLT Mobile Computers? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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