In This Article:
Investors in Aroundtown SA (ETR:AT1) had a good week, as its shares rose 5.3% to close at €2.55 following the release of its full-year results. Revenues of €1.5b reported a marginal miss, falling short of forecasts by 4.3%, but earnings were better than expected - statutory profits came in at €0.05 per share, a nice change from the loss the analysts expected. Following the result, the analysts have 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, Aroundtown's eight analysts currently expect revenues in 2025 to be €1.53b, approximately in line with the last 12 months. Per-share earnings are expected to bounce 611% to €0.34. In the lead-up to this report, the analysts had been modelling revenues of €1.58b and earnings per share (EPS) of €0.32 in 2025. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.
See our latest analysis for Aroundtown
The consensus has made no major changes to the price target of €2.92, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Aroundtown at €4.20 per share, while the most bearish prices it at €1.70. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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. It's pretty clear that there is an expectation that Aroundtown's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.8% growth on an annualised basis. This is compared to a historical growth rate of 3.7% over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 17% annually. Factoring in the forecast slowdown in growth, it's pretty clear that Aroundtown is still expected to grow faster than the wider industry.