Stock Analysis

Wizz Air Holdings Plc (LON:WIZZ) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

LSE:WIZZ
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Investors in Wizz Air Holdings Plc (LON:WIZZ) had a good week, as its shares rose 9.0% to close at UK£20.50 following the release of its third-quarter results. The result was fairly weak overall, with revenues of €1.1b being 7.0% less than what the analysts had been modelling. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Wizz Air Holdings

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LSE:WIZZ Earnings and Revenue Growth January 28th 2024

After the latest results, the 20 analysts covering Wizz Air Holdings are now predicting revenues of €5.50b in 2025. If met, this would reflect a solid 12% improvement in revenue compared to the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €5.49b and earnings per share (EPS) of €3.59 in 2025. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

There's been no real change to the consensus price target of UK£26.04, with Wizz Air Holdings seemingly executing in line with expectations. 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. There are some variant perceptions on Wizz Air Holdings, with the most bullish analyst valuing it at UK£49.90 and the most bearish at UK£14.77 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wizz Air Holdings' past performance and to peers in the same industry. We would highlight that Wizz Air Holdings' revenue growth is expected to slow, with the forecast 9.6% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.6% per year. Even after the forecast slowdown in growth, it seems obvious that Wizz Air Holdings is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. 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 UK£26.04, with the latest estimates not enough to have an impact on their price targets.

We have estimates for Wizz Air Holdings from its 20 analysts out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Wizz Air Holdings (1 can't be ignored!) that you should be aware 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.