RE:RE:RE:Recent Simply Wall Street articleWhen I get the time, I’ll probably read this again and maybe do as you suggest.
The graphic is pretty clear - a bump in earnings and a noticeable slide down after that with no increase or even leveling (though the rate of decline slows). There is nothing in that graphic that shows the 16% increase in earnings you mention (and which is why I brought it up).
There is nothing presented in the piece to support the highlighted statement. How does the decreasing earnings shown in the graphic translate into profits increasing?
It’s the piece that I have an issue with, not the projections found by digging more. THAT is my point.
SWS is better than MF (imho) but still not very reliable.
Sirius1421 wrote:
Sadie222 wrote: It’s always nice to see optimism regarding a stock I’m interested in, but this is just another opinion piece, a collection of random thoughts. Nothing in it backs up his assertion that profits will double, and the graphic shows earnings sliding into oblivion. WTF???
F
Simply Wall Street does not make their own earnings estimates. They get them from published estimates made by other analysts. Using this and other data they collect they produce a series of graphics that gives one a pretty good idea of what is going on with a company as well as where it's been. Someone has obviously taken these graphics and written a short article using them. Why you say this is "a collection of random thoughts" or that nothing backs up this analysis is beyond me? You obviously don't know how SWS works and I refer you to the graphs and data that the article is based on:
https://simplywall.st/stocks/ca/utilities/tsx-ala/altagas-shares#close.
Regarding your statement that the company's future earnings are "sliding into oblivion," that is just more garbage. The 2021 earnings estmates SWS uses are based on only one estimate obtained which you can see for yourself by clicking on "raw data" below the chart. I wouldn't place a lot of confidence in only one estimate. More useful, in my opinion, are the earnings projections organized by Yahoo Finance as they are based on the work of eight analysts:
https://ca.finance.yahoo.com/quote/ALA.TO/analysis?p=ALA.TO. Yahoo Finance doesn't offer any estimates for 2021. Of note here is that the average estimate for EPS is $0.88 for 2019 and $1.11 for 2020. If you go to the very bottom of that page, you will see that the average estimated growth rate for ALA's earnings for the next five years is 16.7% per year.
I hope I have contributed to your education and that ot others on how to use SWS. It isn't perfect and can occasionaly be misleading but if you need to get a quick grasp of the situtation regarding a company it is my preferred first stop.