In This Article:
The half-year results for Sixt SE (ETR:SIX2) were released last week, making it a good time to revisit its performance. It looks like a credible result overall - although revenues of €1.0b were what the analysts expected, Sixt surprised by delivering a (statutory) profit of €0.54 per share, an impressive 29% above what was forecast. 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 Sixt after the latest results.
See our latest analysis for Sixt
Taking into account the latest results, the nine analysts covering Sixt provided consensus estimates of €3.93b revenue in 2024, which would reflect a measurable 3.4% decline over the past 12 months. Statutory earnings per share are predicted to accumulate 7.2% to €5.52. In the lead-up to this report, the analysts had been modelling revenues of €3.92b and earnings per share (EPS) of €5.79 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at €106, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Sixt at €140 per share, while the most bearish prices it at €80.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sixt's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 6.6% by the end of 2024. This indicates a significant reduction from annual growth of 14% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.7% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Sixt is expected to lag the wider industry.