It's been a good week for Fraport AG (ETR:FRA) shareholders, because the company has just released its latest quarterly results, and the shares gained 7.3% to €68.40. The result was positive overall - although revenues of €1.4b were in line with what the analysts predicted, Fraport surprised by delivering a statutory profit of €2.39 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Fraport after the latest results.
Taking into account the latest results, the most recent consensus for Fraport from 17 analysts is for revenues of €4.77b in 2027. If met, it would imply a credible 4.7% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 5.1% to €3.49. Before this earnings report, the analysts had been forecasting revenues of €4.77b and earnings per share (EPS) of €3.49 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.
Check out our latest analysis for Fraport
It will come as no surprise then, to learn that the consensus price target is largely unchanged at €73.52. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Fraport, with the most bullish analyst valuing it at €85.00 and the most bearish at €57.00 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 Fraport's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 3.7% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Compare this to the 45 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.6% per year. So it's pretty clear that, while Fraport's revenue growth is expected to slow, it's expected to grow roughly in line with the 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 in mind, we wouldn't be too quick to come to a conclusion on Fraport. Long-term earnings power is much more important than next year's profits. We have forecasts for Fraport going out to 2028, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 2 warning signs for Fraport (1 doesn't sit too well with us!) that you need to be mindful of.
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