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What Should We Expect From PVH Corp.'s (NYSE:PVH) Earnings Over The Next Year?

Simply Wall St

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After PVH Corp.'s ( NYSE:PVH ) earnings announcement on 05 May 2019, analysts seem fairly confident, with earnings expected to grow by 18% in the upcoming year compared with the past 5-year average growth rate of 13%. Presently, with latest-twelve-month earnings at US$746m, we should see this growing to US$881m 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 .

View our latest analysis for PVH

What can we expect from PVH in the longer term?

The view from 18 analysts over the next three years is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of PVH's earnings growth over these next few years.

NYSE:PVH Past and Future Earnings, June 5th 2019

This results in an annual growth rate of 8.5% based on the most recent earnings level of US$746m to the final forecast of US$1.0b by 2022. EPS reaches $12.79 in the final year of forecast compared to the current $9.76 EPS today. In 2022, PVH's profit margin will have expanded from 7.7% to 9.7%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For PVH, there are three fundamental aspects you should further examine:

  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 PVH 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 PVH is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of PVH? 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.