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Last week, you might have seen that Deutsche Lufthansa AG (ETR:LHA) released its quarterly result to the market. The early response was not positive, with shares down 2.6% to €6.32 in the past week. Revenues of €8.1b beat expectations by a respectable 3.2%, although statutory losses per share increased. Deutsche Lufthansa lost €0.74, which was 160% more than what the analysts had included in their models. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
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After the latest results, the 14 analysts covering Deutsche Lufthansa are now predicting revenues of €39.7b in 2025. If met, this would reflect a satisfactory 3.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dip 3.0% to €1.00 in the same period. Before this earnings report, the analysts had been forecasting revenues of €39.7b and earnings per share (EPS) of €1.07 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
Check out our latest analysis for Deutsche Lufthansa
The consensus price target held steady at €6.89, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Deutsche Lufthansa, with the most bullish analyst valuing it at €12.00 and the most bearish at €4.85 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
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 Deutsche Lufthansa's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.5% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.9% annually. So it's pretty clear that, while Deutsche Lufthansa's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.