Earnings Beat: MTU Aero Engines AG Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

MTU Aero Engines AG (ETR:MTX) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 7.5% to hit €2.1b. MTU Aero Engines also reported a statutory profit of €4.03, which was an impressive 30% above what the analysts had forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on MTU Aero Engines after the latest results.

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Following the latest results, MTU Aero Engines' 18 analysts are now forecasting revenues of €8.46b in 2025. This would be a reasonable 7.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 10% to €14.97. Yet prior to the latest earnings, the analysts had been anticipated revenues of €8.53b and earnings per share (EPS) of €14.79 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.

View our latest analysis for MTU Aero Engines

There were no changes to revenue or earnings estimates or the price target of €343, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic MTU Aero Engines analyst has a price target of €416 per share, while the most pessimistic values it at €250. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of MTU Aero Engines'historical trends, as the 10% annualised revenue growth to the end of 2025 is roughly in line with the 12% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 18% annually. So it's pretty clear that MTU Aero Engines is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for MTU Aero Engines going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether MTU Aero Engines' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.