Analysts Are Updating Their Flughafen Zürich AG (VTX:FHZN) Estimates After Its Interim Results

Flughafen Zürich AG (VTX:FHZN) shareholders are probably feeling a little disappointed, since its shares fell 3.6% to CHF196 in the week after its latest half-year results. Flughafen Zürich reported in line with analyst predictions, delivering revenues of CHF631m and statutory earnings per share of CHF4.94, suggesting the business is executing well and in line with its plan. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Flughafen Zürich

Taking into account the latest results, the most recent consensus for Flughafen Zürich from 14 analysts is for revenues of CHF1.32b in 2024. If met, it would imply an okay 2.0% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 3.9% to CHF10.76. In the lead-up to this report, the analysts had been modelling revenues of CHF1.31b and earnings per share (EPS) of CHF11.10 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at CHF223, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Flughafen Zürich, with the most bullish analyst valuing it at CHF265 and the most bearish at CHF177 per share. 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.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 4.1% growth on an annualised basis. That is in line with its 4.6% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 3.9% per year. It's clear that while Flughafen Zürich's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Flughafen Zürich. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Flughafen Zürich analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Flughafen Zürich .

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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.