Analyst Estimates: Here's What Brokers Think Of Accor SA (EPA:AC) After Its Full-Year Report

Accor SA (EPA:AC) shareholders are probably feeling a little disappointed, since its shares fell 4.7% to €31.34 in the week after its latest yearly results. The results were positive, with revenue coming in at €2.2b, beating analyst expectations by 2.4%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Accor

Following the latest results, Accor's 16 analysts are now forecasting revenues of €3.19b in 2022. This would be a major 45% improvement in sales compared to the last 12 months. Accor is also expected to turn profitable, with statutory earnings of €0.45 per share. Before this earnings report, the analysts had been forecasting revenues of €3.19b and earnings per share (EPS) of €0.20 in 2022. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the massive increase in earnings per share expectations following these results.

The consensus price target was unchanged at €34.11, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. Currently, the most bullish analyst values Accor at €44.00 per share, while the most bearish prices it at €24.10. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. For example, we noticed that Accor's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 45% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 2.5% 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 8.8% annually. Not only are Accor's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than 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 Accor'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. The consensus price target held steady at €34.11, with the latest estimates not enough to have an impact on their price targets.

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 Accor analysts - going out to 2024, and you can see them free on our platform here.

You can also view our analysis of Accor's balance sheet, and whether we think Accor is carrying too much debt, for free on our platform 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.