Analysts Have Made A Financial Statement On TUI AG’s (ETR:TUI1) Yearly Report

It’s been a good week for TUI AG (ETR:TUI1) shareholders, because the company has just released its latest annual results, and the shares gained 3.2% to €8.60. It was a credible result overall, with revenues of €23b and statutory earnings per share of €0.99 both in line with analyst estimates, showing that TUI is executing in line with expectations. 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. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analysts have changed their mind on TUI after the latest results.

You are watching: Analysts Have Made A Financial Statement On TUI AG’s (ETR:TUI1) Yearly Report

See our latest analysis for TUI

Following the latest results, TUI’s ten analysts are now forecasting revenues of €24.3b in 2025. This would be a credible 4.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 21% to €1.21. In the lead-up to this report, the analysts had been modelling revenues of €23.6b and earnings per share (EPS) of €1.28 in 2025. So it’s pretty clear consensus is mixed on TUI after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

See more : Stocks plunge following Fed inflation projections

There’s been no major changes to the price target of €10.12, suggesting that the impact of higher forecast revenue and lower earnings won’t result in a meaningful change to the business’ valuation. 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 TUI, with the most bullish analyst valuing it at €16.00 and the most bearish at €6.60 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 TUI’s revenue growth is expected to slow, with the forecast 4.9% annualised growth rate until the end of 2025 being well below the historical 16% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.5% annually. Factoring in the forecast slowdown in growth, it seems obvious that TUI is also expected to grow slower than other industry participants.

Story Continues