MTU Aero Engines AG Just Recorded A 45% EPS Beat: Here's What Analysts Are Forecasting Next

MTU Aero Engines AG (ETR:MTX) shareholders are probably feeling a little disappointed, since its shares fell 7.6% to €359 in the week after its latest interim results. It looks like a credible result overall - although revenues of €4.1b were what the analysts expected, MTU Aero Engines surprised by delivering a (statutory) profit of €5.14 per share, an impressive 45% above what was forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from MTU Aero Engines' 15 analysts is for revenues of €8.56b in 2025. This reflects a reasonable 4.1% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be €15.69, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €8.57b and earnings per share (EPS) of €15.43 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.

See our latest analysis for MTU Aero Engines

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €377. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values MTU Aero Engines at €450 per share, while the most bearish prices it at €296. 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.

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. It's pretty clear that there is an expectation that MTU Aero Engines' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.5% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 20% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than MTU Aero Engines.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that MTU Aero Engines' revenue is expected to perform worse than the wider industry. The consensus price target held steady at €377, with the latest estimates not enough to have an impact on their price targets.

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.

You can also see our analysis of MTU Aero Engines' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.