Forecast: Analysts Think AirAsia X Berhad's (KLSE:AAX) Business Prospects Have Improved Drastically

Shareholders in AirAsia X Berhad (KLSE:AAX) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

Following the upgrade, the current consensus from AirAsia X Berhad's three analysts is for revenues of RM12b in 2025 which - if met - would reflect a huge 285% increase on its sales over the past 12 months. Statutory earnings per share are supposed to drop 12% to RM0.45 in the same period. Before this latest update, the analysts had been forecasting revenues of RM9.5b and earnings per share (EPS) of RM0.40 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for AirAsia X Berhad

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. One thing stands out from these estimates, which is that AirAsia X Berhad is forecast to grow faster in the future than it has in the past, with revenues expected to display 285% annualised growth until the end of 2025. If achieved, this would be a much better result than the 4.4% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.5% annually. So it looks like AirAsia X Berhad is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about AirAsia X Berhad's future.

Still, 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 AirAsia X Berhad going out to 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 upgrading 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.