Earnings Miss: Aeroports de Paris SA Missed EPS By 17% And Analysts Are Revising Their Forecasts

Last week, you might have seen that Aeroports de Paris SA (EPA:ADP) released its interim result to the market. The early response was not positive, with shares down 4.4% to €123 in the past week. Revenues were in line with forecasts, at €2.5b, although statutory earnings per share came in 17% below what the analysts expected, at €2.14 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Aeroports de Paris after the latest results.

See our latest analysis for Aeroports de Paris

Taking into account the latest results, the most recent consensus for Aeroports de Paris from 16 analysts is for revenues of €5.37b in 2023. If met, it would imply an okay 2.3% increase on its revenue over the past 12 months. Statutory per share are forecast to be €5.66, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €5.35b and earnings per share (EPS) of €5.65 in 2023. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of €138, suggesting that the company has met expectations in its recent result. 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 Aeroports de Paris, with the most bullish analyst valuing it at €165 and the most bearish at €120 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Aeroports de Paris shareholders.

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. One thing stands out from these estimates, which is that Aeroports de Paris is forecast to grow faster in the future than it has in the past, with revenues expected to display 4.7% annualised growth until the end of 2023. If achieved, this would be a much better result than the 0.007% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.5% per year. So it looks like Aeroports de Paris is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at €138, 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. At Simply Wall St, we have a full range of analyst estimates for Aeroports de Paris going out to 2025, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 3 warning signs for Aeroports de Paris (1 is concerning!) that you need to be mindful 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.