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What Should We Expect From AURES Technologies S.A.'s (EPA:AURS) Earnings Over The Next Year?

Simply Wall St

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In December 2018, AURES Technologies S.A. (EPA:AURS) released its earnings update. Generally, analyst forecasts seem fairly subdued, with profits predicted to rise by 7.4% next year compared with the higher past 5-year average growth rate of 19%. Currently with trailing-twelve-month earnings of €8.1m, we can expect this to reach €8.7m by 2020. Below is a brief commentary around AURES Technologies's earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

See our latest analysis for AURES Technologies

How will AURES Technologies perform in the near future?

The view from 3 analysts over the next three years is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for AURS, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.

ENXTPA:AURS Past and Future Earnings, July 19th 2019

This results in an annual growth rate of 10% based on the most recent earnings level of €8.1m to the final forecast of €10m by 2022. This leads to an EPS of €2.6 in the final year of projections relative to the current EPS of €2.05. This initial high-growth revenue squeezes AURS's margins. However, analysts are expecting earnings growth to catch up, and current margins of 7.9% to expand to 8.0% by the end of 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For AURES Technologies, I've compiled three relevant factors you should further research:

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