Results: Aroundtown SA Exceeded Expectations And The Consensus Has Updated Its Estimates

It's been a good week for Aroundtown SA (ETR:AT1) shareholders, because the company has just released its latest yearly results, and the shares gained 5.3% to €2.55. Revenues of €1.5b reported a marginal miss, falling short of forecasts by 4.3%, but earnings were better than expected - statutory profits came in at €0.05 per share, a nice change from the loss the analysts expected. The analysts 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Aroundtown after the latest results.

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Following last week's earnings report, Aroundtown's eight analysts are forecasting 2025 revenues to be €1.53b, approximately in line with the last 12 months. Per-share earnings are expected to shoot up 611% to €0.34. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.58b and earnings per share (EPS) of €0.32 in 2025. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.

Check out our latest analysis for Aroundtown

There's been no real change to the average price target of €2.92, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Aroundtown at €4.20 per share, while the most bearish prices it at €1.70. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Aroundtown's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Aroundtown's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.8% growth on an annualised basis. This is compared to a historical growth rate of 3.7% over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 17% annually. Factoring in the forecast slowdown in growth, it's pretty clear that Aroundtown is still expected to grow faster than 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 Aroundtown following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates that is expected to perform better than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Yet - earnings are more important to the intrinsic value of the business. The consensus price target held steady at €2.92, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Aroundtown going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for Aroundtown you should be aware of, and 1 of them is concerning.

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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.