Amadeus IT Group, S.A. (BME:AMS) Just Released Its Half-Yearly Results And Analysts Are Updating Their Estimates

Shareholders might have noticed that Amadeus IT Group, S.A. (BME:AMS) filed its interim result this time last week. The early response was not positive, with shares down 3.4% to €69.44 in the past week. The result was positive overall - although revenues of €3.3b were in line with what the analysts predicted, Amadeus IT Group surprised by delivering a statutory profit of €1.62 per share, modestly greater than 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Amadeus IT Group from 19 analysts is for revenues of €6.58b in 2025. If met, it would imply a reasonable 3.6% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be €2.97, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €6.60b and earnings per share (EPS) of €2.97 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Amadeus IT Group

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €77.91. 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. Currently, the most bullish analyst values Amadeus IT Group at €88.00 per share, while the most bearish prices it at €65.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Amadeus IT Group is an easy business to forecast or the the analysts are all using similar assumptions.

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. We would highlight that Amadeus IT Group's revenue growth is expected to slow, with the forecast 7.4% annualised growth rate until the end of 2025 being well below the historical 21% p.a. growth over the last five years. Compare this to the 8 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.2% per year. Factoring in the forecast slowdown in growth, it looks like Amadeus IT Group is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate 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 Amadeus IT Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Amadeus IT Group analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Amadeus IT Group you should know about.

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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.