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Last week, you might have seen that MTU Aero Engines AG (ETR:MTX) released its interim result to the market. The early response was not positive, with shares down 6.3% to €211 in the past week. It was an okay report, and revenues came in at €3.1b, approximately in line with analyst estimates leading up to the results announcement. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for MTU Aero Engines
Taking into account the latest results, the consensus forecast from MTU Aero Engines' 17 analysts is for revenues of €6.29b in 2023. This reflects a satisfactory 5.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 15% to €10.00. Yet prior to the latest earnings, the analysts had been anticipated revenues of €6.33b and earnings per share (EPS) of €10.13 in 2023. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of €247, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic MTU Aero Engines analyst has a price target of €295 per share, while the most pessimistic values it at €210. 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.
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. The analysts are definitely expecting MTU Aero Engines' growth to accelerate, with the forecast 11% annualised growth to the end of 2023 ranking favourably alongside historical growth of 2.5% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that MTU Aero Engines is expected to grow at about the same rate as the wider industry.