In June 2019, AURES Technologies S.A. (EPA:AURS) released its latest earnings announcement, which showed that the company gained from a robust tailwind, leading to a double-digit earnings growth of 21%. Investors may find it useful to understand how market analysts view AURES Technologies's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
Market analysts' prospects for the upcoming year seems pessimistic, with earnings falling by a double-digit -19%. However, the next few years show a contrast, with earnings growth becoming positive in 2021, with the bottom line increasing to €9.7m in 2022.
While it is informative knowing the growth year by year relative to today’s level, it may be more beneficial determining the rate at which the company is moving on average every year. The benefit of this method is that it ignores near term flucuations and accounts for the overarching direction of AURES Technologies's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I've appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 6.0%. This means, we can anticipate AURES Technologies will grow its earnings by 6.0% every year for the next few years.
For AURES Technologies, there are three important 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 AURS 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 AURS is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of AURS? 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 email@example.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.