Yahoo Movies Will Fortive Corporation’s (NYSE:FTV) Earnings Grow In The Next 12 Months?
After Fortive Corporation’s (NYSE:FTV) earnings announcement in June 2018, analyst forecasts seem in-line with historical trends, with earnings growth rate expected to be 5.3% in the upcoming year, relative to the past five-year average earnings growth of 5.9% per year. Presently, with latest-twelve-month earnings at US$1.16b, we should see this growing to US$1.22b by 2019. Below is a brief commentary around Fortive’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
See our latest analysis for Fortive
Can we expect Fortive to keep growing?
Longer term expectations from the 10 analysts covering FTV’s stock is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
By 2021, FTV’s earnings should reach US$1.35b, from current levels of US$1.04b, resulting in an annual growth rate of 10.2%. This leads to an EPS of $3.96 in the final year of projections relative to the current EPS of $3.01. The bottom-line growth seems to be caused by reduction in costs rather than purely top-line expansion as earnings is increasing at a faster rate. With a current profit margin of 15.7%, this movement will result in a margin of 18.0% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Fortive, I’ve put together 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.
Valuation: What is Fortive 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 Fortive is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Fortive? 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.
