One Analyst's Earnings Estimates For Erlebnis Akademie AG (FRA:EAD) Are Surging Higher

Erlebnis Akademie AG (FRA:EAD) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the latest consensus from Erlebnis Akademie's single analyst is for revenues of €27m in 2022, which would reflect a sizeable 50% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 82% to €0.92. Before this latest update, the analyst had been forecasting revenues of €21m and earnings per share (EPS) of €0.60 in 2022. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

View our latest analysis for Erlebnis Akademie

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Erlebnis Akademie's rate of growth is expected to accelerate meaningfully, with the forecast 50% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 12% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 24% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Erlebnis Akademie is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. More bullish expectations could be a signal for investors to take a closer look at Erlebnis Akademie.

The covering analyst is definitely bullish on Erlebnis Akademie, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other concern we've identified .

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.