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Last week saw the newest third-quarter earnings release from Amadeus FiRe AG (ETR:AAD), an important milestone in the company's journey to build a stronger business. Results look mixed - while revenue fell marginally short of analyst estimates at €112m, statutory earnings were in line with expectations, at €7.12 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Amadeus FiRe
Taking into account the latest results, the most recent consensus for Amadeus FiRe from twin analysts is for revenues of €461.8m in 2025. If met, it would imply a credible 2.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 5.1% to €6.75. In the lead-up to this report, the analysts had been modelling revenues of €480.9m and earnings per share (EPS) of €8.24 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.
The consensus price target fell 9.9% to €123, with the weaker earnings outlook clearly leading valuation estimates.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Amadeus FiRe's revenue growth is expected to slow, with the forecast 2.3% annualised growth rate until the end of 2025 being well below the historical 14% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.6% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Amadeus FiRe.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Amadeus FiRe. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.