Stock Analysis

Sixt SE (ETR:SIX2) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

XTRA:SIX2
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Sixt SE (ETR:SIX2) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was an okay report, and revenues came in at €1.2b, approximately in line with analyst estimates leading up to the results announcement. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Sixt

earnings-and-revenue-growth
XTRA:SIX2 Earnings and Revenue Growth November 15th 2024

Taking into account the latest results, the most recent consensus for Sixt from nine analysts is for revenues of €4.25b in 2025. If met, it would imply a modest 4.5% increase on its revenue over the past 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €4.25b and earnings per share (EPS) of €7.11 in 2025. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

There's been no real change to the consensus price target of €95.88, with Sixt seemingly executing in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Sixt analyst has a price target of €135 per share, while the most pessimistic values it at €80.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Sixt's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.6% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Compare this to the 34 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.2% per year. Factoring in the forecast slowdown in growth, it looks like Sixt is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at €95.88, with the latest estimates not enough to have an impact on their price targets.

At least one of Sixt's nine analysts has provided estimates out to 2026, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Sixt (1 doesn't sit too well with us) 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.