Dassault Aviation société anonyme (EPA:AM) Released Earnings Last Week And Analysts Lifted Their Price Target To €255

Dassault Aviation société anonyme (EPA:AM) just released its annual report and things are looking bullish. The company beat expectations with revenues of €6.2b arriving 3.6% ahead of forecasts. Statutory earnings per share (EPS) were €11.78, 2.8% 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. 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 Dassault Aviation société anonyme

Taking into account the latest results, the consensus forecast from Dassault Aviation société anonyme's 13 analysts is for revenues of €7.17b in 2025. This reflects a solid 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 6.6% to €12.62. Before this earnings report, the analysts had been forecasting revenues of €7.18b and earnings per share (EPS) of €13.31 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 11% to €255, suggesting the revised estimates are not indicative of a weaker long-term future for the business. 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. There are some variant perceptions on Dassault Aviation société anonyme, with the most bullish analyst valuing it at €370 and the most bearish at €210 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Dassault Aviation société anonyme's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 15% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 4.0% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.5% annually. So it looks like Dassault Aviation société anonyme is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Dassault Aviation société anonyme. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 estimates - from multiple Dassault Aviation société anonyme analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Dassault Aviation société anonyme Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.