Amadeus IT Group, S.A. (BME:AMS) Just Released Its Third-Quarter Earnings: Here's What Analysts Think
Investors in Amadeus IT Group, S.A. (BME:AMS) had a good week, as its shares rose 5.3% to close at €61.62 following the release of its third-quarter results. Results were roughly in line with estimates, with revenues of €1.7b and statutory earnings per share of €0.90. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 current consensus from Amadeus IT Group's 20 analysts is for revenues of €7.45b in 2027. This would reflect a solid 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 17% to €3.71. Before this earnings report, the analysts had been forecasting revenues of €7.44b and earnings per share (EPS) of €3.69 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 Amadeus IT Group
The analysts reconfirmed their price target of €70.97, 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. There are some variant perceptions on Amadeus IT Group, with the most bullish analyst valuing it at €82.00 and the most bearish at €53.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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 Amadeus IT Group's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 8.9% growth on an annualised basis. This is compared to a historical growth rate of 16% 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 7.1% annually. Even after the forecast slowdown in growth, it seems obvious that Amadeus IT Group is also expected to grow faster than the wider industry.
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, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at €70.97, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Amadeus IT Group analysts - going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Amadeus IT Group .
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