Amadeus FiRe AG (ETR:AAD) Released Earnings Last Week And Analysts Lifted Their Price Target To €180

Shareholders of Amadeus FiRe AG (ETR:AAD) will be pleased this week, given that the stock price is up 12% to €133 following its latest yearly results. It looks like the results were a bit of a negative overall. While revenues of €407m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.9% to hit €6.71 per share. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

See our latest analysis for Amadeus FiRe

Following the latest results, Amadeus FiRe's solitary analyst are now forecasting revenues of €441.0m in 2023. This would be a solid 8.3% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to climb 18% to €7.89. Yet prior to the latest earnings, the analyst had been anticipated revenues of €427.0m and earnings per share (EPS) of €7.30 in 2023. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

It will come as no surprise to learn that the analyst has increased their price target for Amadeus FiRe 5.9% to €180on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Amadeus FiRe's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Amadeus FiRe's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 8.3% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.5% per year. So it's pretty clear that, while Amadeus FiRe's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Amadeus FiRe's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Amadeus FiRe 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.