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After QIAGEN N.V.'s (NYSE:QGEN) earnings announcement in March 2019, analysts seem fairly confident, as a 19% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of -1.6%. By 2020, we can expect QIAGEN’s bottom line to reach US$227m, a jump from the current trailing-twelve-month of US$190m. Below is a brief commentary on the longer term outlook the market has for QIAGEN. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
How will QIAGEN perform in the near future?
The longer term expectations from the 18 analysts of QGEN is tilted towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To understand the overall trajectory of QGEN's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2022, QGEN's earnings should reach US$339m, from current levels of US$190m, resulting in an annual growth rate of 18%. This leads to an EPS of $1.39 in the final year of projections relative to the current EPS of $0.84. In 2022, QGEN's profit margin will have expanded from 13% to 18%.
Future outlook is only one aspect when you're building an investment case for a stock. For QIAGEN, I've compiled three essential factors you should further examine:
- 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 QIAGEN 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 QIAGEN is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of QIAGEN? 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.