The half-year results for Flughafen Wien Aktiengesellschaft (VIE:FLU) were released last week, making it a good time to revisit its performance. Revenues of €401m were in line with forecasts, although earnings per share (EPS) came in below expectations at €1.63, missing estimates by 6.5%. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see analysts' latest post-earnings forecasts for next year.
Following last week's earnings report, Flughafen Wien's five analysts are forecasting 2019 revenues to be €851.9m, approximately in line with the last 12 months. Earnings per share are expected to rise 3.7% to €1.91. In the lead-up to this report, analysts had been modelling revenues of €847.7m and earnings per share (EPS) of €1.90 in 2019. So it's pretty clear that, although analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
Analysts reconfirmed their price target of €41.22, showing that the business is executing well and in line with expectations. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Flughafen Wien, with the most bullish analyst valuing it at €46.00 and the most bearish at €32.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Flughafen Wien's revenue growth is expected to slow, with forecast 0.1% increase next year well below the historical 5.2%p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the market, which are in aggregate expected to see revenue growth of 2.5% next year. Factoring in the forecast slowdown in growth, it seems obvious that analysts still expect Flughafen Wien to grow slower than the wider market.
The Bottom Line
The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Flughafen Wien's revenues are expected to perform worse than the wider market. The consensus price target held steady at €41.22, with the latest estimates not enough to have an impact on analysts' estimated valuations.
With that in mind, we wouldn't be too quick to come to a conclusion on Flughafen Wien. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Flughafen Wien going out to 2023, and you can see them free on our platform here..
You can also view our analysis of Flughafen Wien's balance sheet, and whether we think Flughafen Wien is carrying too much debt, for free on our platform here.
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