Earnings Update: Webjet Group Limited (ASX:WJL) Just Reported And Analysts Are Trimming Their Forecasts

Shareholders will be ecstatic, with their stake up 24% over the past week following Webjet Group Limited's (ASX:WJL) latest half-year results. It was a credible result overall, with revenues of AU$68m and statutory earnings per share of AU$0.013 both in line with analyst estimates, showing that Webjet Group is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the eight analysts covering Webjet Group provided consensus estimates of AU$136.1m revenue in 2026, which would reflect a small 2.2% decline over the past 12 months. Statutory earnings per share are predicted to surge 108% to AU$0.038. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$144.9m and earnings per share (EPS) of AU$0.051 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

Check out our latest analysis for Webjet Group

It'll come as no surprise then, to learn that the analysts have cut their price target 8.2% to AU$1.00. 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 Webjet Group analyst has a price target of AU$1.37 per share, while the most pessimistic values it at AU$0.81. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Webjet Group shareholders.

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. We would also point out that the forecast 4.4% annualised revenue decline to the end of 2026 is better than the historical trend, which saw revenues shrink 6.7% annually over the past year By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.9% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Webjet Group to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Webjet Group's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Webjet Group going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Webjet Group you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.