Heroic Estimates!

Is it possible?

I have mentioned before my concerns regarding analysts estimates and the numerous revisions and errors that exist, so with this in mind I thought I would have a look at whats gone before and whats expected for the largest twenty companies by Market Capitalisation in the FTSE-100; below is the graphical representation of this (forward estimates are the dotted lines).

Maring and EPS

To get to where analysts are predicting into 2017-2019 we are going to see some pretty heroic EPS growth in the double digits and comparable to what happened in 2009-2010; on a 3 year annualised basis by 2019 EPS will also have grown by 15%p.a.!!!!! With average operating margins falling for these twenty five shares I need some convincing that this will happen.

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