Results: Fraport AG Beat Earnings Expectations And Analysts Now Have New Forecasts

Fraport AG (ETR:FRA) just released its annual report and things are looking bullish. The company beat expectations with revenues of €4.1b arriving 2.9% ahead of forecasts. Statutory earnings per share (EPS) were €4.26, 5.7% ahead of estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Fraport

Following the latest results, Fraport's 16 analysts are now forecasting revenues of €4.22b in 2024. This would be a satisfactory 4.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 15% to €4.88. Yet prior to the latest earnings, the analysts had been anticipated revenues of €4.10b and earnings per share (EPS) of €4.66 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of €59.68, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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 Fraport at €74.00 per share, while the most bearish prices it at €40.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Fraport shareholders.

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. The analysts are definitely expecting Fraport's growth to accelerate, with the forecast 4.1% annualised growth to the end of 2024 ranking favourably alongside historical growth of 0.0004% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Fraport is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Fraport's earnings potential next year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider 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 in mind, we wouldn't be too quick to come to a conclusion on Fraport. Long-term earnings power is much more important than next year's profits. We have forecasts for Fraport going out to 2026, and you can see them free on our platform here.

Even so, be aware that Fraport is showing 2 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...

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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.