In April 2019, Profile Systems & Software A.E. (ATH:PROF) announced its latest earnings update, which showed that the business experienced a strong tailwind, leading to a double-digit earnings growth of 24%. Below, I've presented key growth figures on how market analysts perceive Profile Systems & Software A.E's earnings growth outlook over the next few years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.

See our latest analysis for Profile Systems & Software A.E

Market analysts' consensus outlook for the coming year seems optimistic, with earnings increasing by a robust 43%. This growth seems to continue into the following year with rates arriving at double digit 74% compared to today’s earnings, and finally hitting €2.6m by 2022.

While it is useful to be aware of the growth each year relative to today’s figure, it may be more insightful to estimate the rate at which the business is moving on average every year. The pro of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of Profile Systems & Software A.E's earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I've inserted 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 22%. This means, we can expect Profile Systems & Software A.E will grow its earnings by 22% every year for the next few years.

Next Steps:

For Profile Systems & Software A.E, there are three fundamental aspects 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 PROF 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 PROF is currently mispriced by the market.

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