Amadeus FiRe AG (ETR:AAD) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results were roughly in line with estimates, with revenues of €233m and statutory earnings per share of €4.62. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

Check out our latest analysis for Amadeus FiRe

After the latest results, the sole analyst covering Amadeus FiRe are now predicting revenues of €278.0m in 2020. If met, this would reflect a meaningful 19% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to tumble 33% to €3.11 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of €316.0m and earnings per share (EPS) of €7.62 in 2020. It looks like sentiment has declined substantially in the aftermath of these results, with a real cut to revenue estimates and a large cut to earnings per share numbers as well.

The consensus price target fell 8.3% to €165, with the weaker earnings outlook clearly leading valuation estimates.

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. The analyst is definitely expecting Amadeus FiRe's growth to accelerate, with the forecast 19% growth ranking favourably alongside historical growth of 7.1% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Amadeus FiRe is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Amadeus FiRe. They also downgraded their revenue estimates, although industry data suggests that Amadeus FiRe's revenues are expected to grow faster than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Amadeus FiRe going out as far as 2024, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Amadeus FiRe you should be aware of.

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