NOS, S.G.P.S., S.A. (ELI:NOS) Just Reported Interim Earnings: Have Analysts Changed Their Mind On The Stock?

It's been a good week for NOS, S.G.P.S., S.A. (ELI:NOS) shareholders, because the company has just released its latest half-year results, and the shares gained 3.5% to €3.65. NOS S.G.P.S reported in line with analyst predictions, delivering revenues of €816m and statutory earnings per share of €0.35, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on NOS S.G.P.S after the latest results.

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

Following last week's earnings report, NOS S.G.P.S' twelve analysts are forecasting 2024 revenues to be €1.66b, approximately in line with the last 12 months. Statutory earnings per share are forecast to plunge 24% to €0.37 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.65b and earnings per share (EPS) of €0.32 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the decent improvement in earnings per share expectations following these results.

There's been no major changes to the consensus price target of €4.07, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic NOS S.G.P.S analyst has a price target of €5.25 per share, while the most pessimistic values it at €3.30. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 2.6% growth on an annualised basis. That is in line with its 2.5% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.0% annually. So it's pretty clear that NOS S.G.P.S is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around NOS S.G.P.S' earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €4.07, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for NOS S.G.P.S going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with NOS S.G.P.S (at least 1 which shouldn't be ignored) , and understanding these should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com