MTU Aero Engines AG Just Recorded A 8.6% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, MTU Aero Engines AG (ETR:MTX) recently reported its quarterly numbers. MTU Aero Engines reported €1.9b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €3.90 beat expectations, being 8.6% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 MTU Aero Engines

After the latest results, the 20 analysts covering MTU Aero Engines are now predicting revenues of €8.18b in 2025. If met, this would reflect a decent 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 9.6% to €14.43. Yet prior to the latest earnings, the analysts had been anticipated revenues of €8.15b and earnings per share (EPS) of €14.10 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at €298, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. The most optimistic MTU Aero Engines analyst has a price target of €390 per share, while the most pessimistic values it at €220. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting MTU Aero Engines' growth to accelerate, with the forecast 13% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.0% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 15% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that MTU Aero Engines is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards MTU Aero Engines following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 MTU Aero Engines analysts - going out to 2026, and you can see them free on our platform here.

You can also see whether MTU Aero Engines is carrying too much debt, and whether its balance sheet is healthy, for free on our 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.