Aroundtown SA (ETR:AT1) shareholders are probably feeling a little disappointed, since its shares fell 3.7% to €1.98 in the week after its latest quarterly results. It was a credible result overall, with revenues of €382m and statutory earnings per share of €0.61 both in line with analyst estimates, showing that Aroundtown is executing in line with expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, Aroundtown's ten analysts currently expect revenues in 2026 to be €1.56b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be €0.35, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €1.57b and earnings per share (EPS) of €0.37 in 2026. 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.
View our latest analysis for Aroundtown
The consensus price target held steady at €3.07, 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 Aroundtown, with the most bullish analyst valuing it at €5.00 and the most bearish at €2.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for 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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.1% by the end of 2026. This indicates a significant reduction from annual growth of 0.03% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 7.3% annually for the foreseeable future. The forecasts do look comparatively optimistic for Aroundtown, since they're expecting it to shrink slower than the industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Aroundtown. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Aroundtown analysts - going out to 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 4 warning signs for Aroundtown (1 is a bit concerning!) that we have uncovered.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.