Ryanair Holdings plc (ISE:RYA) Just Released Its Annual Earnings: Here's What Analysts Think

Shareholders might have noticed that Ryanair Holdings plc (ISE:RYA) filed its yearly result this time last week. The early response was not positive, with shares down 3.9% to €18.01 in the past week. It was a credible result overall, with revenues of €13b and statutory earnings per share of €1.67 both in line with analyst estimates, showing that Ryanair Holdings is executing in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ryanair Holdings after the latest results.

View our latest analysis for Ryanair Holdings

Taking into account the latest results, the most recent consensus for Ryanair Holdings from 21 analysts is for revenues of €14.8b in 2025. If met, it would imply a decent 10% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 29% to €2.17. Yet prior to the latest earnings, the analysts had been anticipated revenues of €14.9b and earnings per share (EPS) of €2.25 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at €25.78, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. The most optimistic Ryanair Holdings analyst has a price target of €30.00 per share, while the most pessimistic values it at €21.70. 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 Ryanair Holdings shareholders.

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. We would highlight that Ryanair Holdings' revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2025 being well below the historical 16% 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 Ryanair Holdings is also expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Ryanair Holdings. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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.

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 Ryanair Holdings going out to 2027, 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 2 warning signs for Ryanair Holdings (1 is a bit 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.