Amadeus IT Group, S.A. (BME:AMS) Just Released Its Full-Year Earnings: Here's What Analysts Think

It's been a good week for Amadeus IT Group, S.A. (BME:AMS) shareholders, because the company has just released its latest full-year results, and the shares gained 7.5% to €73.98. Amadeus IT Group reported €6.1b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €2.80 beat expectations, being 2.4% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Amadeus IT Group

After the latest results, the 19 analysts covering Amadeus IT Group are now predicting revenues of €6.77b in 2025. If met, this would reflect a solid 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 9.9% to €3.16. Yet prior to the latest earnings, the analysts had been anticipated revenues of €6.72b and earnings per share (EPS) of €3.09 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at €78.32, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Amadeus IT Group analyst has a price target of €91.00 per share, while the most pessimistic values it at €65.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Amadeus IT Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.9% annually. So it's pretty clear that, while Amadeus IT Group'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 IT Group's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Amadeus IT Group going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Amadeus IT Group , and understanding these should be part of your investment process.

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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.