Ryanair Holdings plc Just Beat EPS By 1,533%: Here's What Analysts Think Will Happen Next

A week ago, Ryanair Holdings plc (ISE:RYA) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 3.3% to hit €3.0b. Ryanair Holdings also reported a statutory profit of €0.14, which was an impressive 1,533% above what the analysts had forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Ryanair Holdings

Taking into account the latest results, the consensus forecast from Ryanair Holdings' 22 analysts is for revenues of €14.9b in 2026. This reflects a reasonable 7.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 13% to €1.74. Before this earnings report, the analysts had been forecasting revenues of €14.9b and earnings per share (EPS) of €1.74 in 2026. 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 €21.92, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Ryanair Holdings at €26.25 per share, while the most bearish prices it at €12.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. It's pretty clear that there is an expectation that Ryanair Holdings' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 6.0% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past five years. Compare this to the 13 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.4% per year. Factoring in the forecast slowdown in growth, it looks like Ryanair Holdings is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at €21.92, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Ryanair Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for Ryanair Holdings going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.