How Do Analysts See Amadeus FiRe AG (ETR:AAD) Performing In The Next Couple Of Years?
The latest earnings release Amadeus FiRe AG's (ETR:AAD) announced in December 2018 suggested that the business experienced a strong tailwind, eventuating to a double-digit earnings growth of 18%. Investors may find it useful to understand how market analysts view Amadeus FiRe's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
See our latest analysis for Amadeus FiRe
Analysts' expectations for next year seems rather muted, with earnings expanding by a single digit 8.2%. The growth outlook in the following year seems much more positive with rates generating double digit 12% compared to today’s earnings, and finally hitting €31m by 2022.
While it is informative understanding the rate of growth year by year relative to today’s level, it may be more beneficial determining the rate at which the business is growing on average every year. The advantage of this technique is that it ignores near term flucuations and accounts for the overarching direction of Amadeus FiRe's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I've appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 7.6%. This means, we can expect Amadeus FiRe will grow its earnings by 7.6% every year for the next few years.
Next Steps:
For Amadeus FiRe, I've compiled three relevant factors you should look at:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is AAD worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AAD is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of AAD? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
