One AirTrip Corp. (TSE:6191) Analyst Just Cut Their EPS Forecasts

The analyst covering AirTrip Corp. (TSE:6191) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

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After the downgrade, the solo analyst covering AirTrip is now predicting revenues of JP¥29b in 2025. If met, this would reflect a modest 7.4% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to plummet 58% to JP¥40.20 in the same period. Previously, the analyst had been modelling revenues of JP¥32b and earnings per share (EPS) of JP¥135 in 2025. Indeed, we can see that the analyst is a lot more bearish about AirTrip's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for AirTrip

The consensus price target fell 39% to JP¥1,100, with the weaker earnings outlook clearly leading analyst valuation estimates.

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. The analyst is definitely expecting AirTrip's growth to accelerate, with the forecast 10.0% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.6% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect AirTrip to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. While the analyst did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of AirTrip.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for AirTrip going out as far as 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.