Yahoo Movies Weibo Corporation (NASDAQ:WB): What We Can Expect From This Growth Stock
Looking at Weibo Corporation’s (NASDAQ:WB) earnings update in September 2018, analyst consensus outlook appear cautiously optimistic, as a 26% increase in profits is expected in the upcoming year, though this is comparatively lower than the historical 5-year average earnings growth of 76%. Currently with trailing-twelve-month earnings of US$353m, we can expect this to reach US$445m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near 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 Weibo
Can we expect Weibo to keep growing?
Over the next three years, it seems the consensus view of the 22 analysts covering WB is skewed towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of WB’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 23% based on the most recent earnings level of US$353m to the final forecast of US$749m by 2022. EPS reaches $4.9 in the final year of forecast compared to the current $1.6 EPS today. Margins are currently sitting at 31%, approximately the same as previous years. With analysts forecasting revenue growth of 1.0692 and WB’s net income growth expected to roughly track that, this company may add value for shareholders over time.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Weibo, there are three essential 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.
Valuation: What is Weibo 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 Weibo is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Weibo? 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.
