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Shareholders of Amadeus FiRe AG (ETR:AAD) will be pleased this week, given that the stock price is up 10% to €121 following its latest annual results. Results were roughly in line with estimates, with revenues of €442m and statutory earnings per share of €7.12. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.
Check out our latest analysis for Amadeus FiRe
Taking into account the latest results, the most recent consensus for Amadeus FiRe from solitary analyst is for revenues of €467.0m in 2024. If met, it would imply a credible 5.6% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 10% to €8.19. In the lead-up to this report, the analyst had been modelling revenues of €460.0m and earnings per share (EPS) of €8.05 in 2024. So it's pretty clear that, although the analyst has updated their estimates, there's been no major change in expectations for the business following the latest results.
With the analyst reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 5.9% to €180. It looks as though they previously had some doubts over whether the business would live up to their expectations.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Amadeus FiRe's revenue growth is expected to slow, with the forecast 5.6% annualised growth rate until the end of 2024 being well below the historical 16% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.3% annually. So it's pretty clear that, while Amadeus FiRe's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analyst reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.