Analysts Are Updating Their MTU Aero Engines AG (ETR:MTX) Estimates After Its Third-Quarter Results
As you might know, MTU Aero Engines AG (ETR:MTX) recently reported its third-quarter numbers. MTU Aero Engines reported €2.4b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €4.18 beat expectations, being 2.1% higher than what the analysts expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for MTU Aero Engines from 19 analysts is for revenues of €10.8b in 2027. If met, it would imply a meaningful 13% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 13% to €19.49. Yet prior to the latest earnings, the analysts had been anticipated revenues of €10.7b and earnings per share (EPS) of €19.52 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for MTU Aero Engines
The analysts reconfirmed their price target of €411, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values MTU Aero Engines at €530 per share, while the most bearish prices it at €320. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that MTU Aero Engines' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 21% per year. Factoring in the forecast slowdown in growth, it seems obvious that MTU Aero Engines is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that MTU Aero Engines' revenue is expected to perform worse than the wider industry. The consensus price target held steady at €411, 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 MTU Aero Engines. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple MTU Aero Engines analysts - going out to 2028, and you can see them free on our platform here.
It might also be worth considering whether MTU Aero Engines' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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