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Last week, you might have seen that Singapore Airlines Limited (SGX:C6L) released its quarterly result to the market. The early response was not positive, with shares down 2.6% to S$6.29 in the past week. Statutory earnings per share fell badly short of expectations, coming in at S$0.094, some 48% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at S$4.8b. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Singapore Airlines after the latest results.
See our latest analysis for Singapore Airlines
Taking into account the latest results, Singapore Airlines' twelve analysts currently expect revenues in 2025 to be S$19.0b, approximately in line with the last 12 months. Per-share earnings are expected to step up 13% to S$0.75. Before this earnings report, the analysts had been forecasting revenues of S$19.1b and earnings per share (EPS) of S$0.76 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at S$6.36. 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. The most optimistic Singapore Airlines analyst has a price target of S$7.80 per share, while the most pessimistic values it at S$5.30. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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 revenue is expected to reverse, with a forecast 3.4% annualised decline to the end of 2025. That is a notable change from historical growth of 14% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.3% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Singapore Airlines is expected to lag the wider industry.