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On 31 March 2019, NOS, S.G.P.S., S.A. (ELI:NOS) released its earnings update. Generally, it seems that analyst forecasts are fairly optimistic, with profits predicted to increase by 28% next year relative to the past 5-year average growth rate of 23%. With trailing-twelve-month net income at current levels of €141m, we should see this rise to €181m in 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.

View our latest analysis for NOS S.G.P.S

How will NOS S.G.P.S perform in the near future?

The longer term expectations from the 11 analysts of NOS is tilted towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of NOS'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.

This results in an annual growth rate of 5.3% based on the most recent earnings level of €141m to the final forecast of €189m by 2022. EPS reaches €0.39 in the final year of forecast compared to the current €0.28 EPS today. In 2022, NOS's profit margin will have expanded from 9.0% to 11%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For NOS S.G.P.S, there are three pertinent factors you should look at:

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 NOS S.G.P.S 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 NOS S.G.P.S is currently mispriced by the market.

3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of NOS S.G.P.S? 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.