MTU Aero Engines AG Just Beat EPS By 16%: Here's What Analysts Think Will Happen Next

MTU Aero Engines AG (ETR:MTX) just released its latest quarterly results and things are looking bullish. MTU Aero Engines beat earnings, with revenues hitting €2.4b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 16%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the 19 analysts covering MTU Aero Engines are now predicting revenues of €9.60b in 2026. If met, this would reflect a modest 4.0% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be €17.41, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €9.58b and earnings per share (EPS) of €17.41 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for MTU Aero Engines

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €398. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on MTU Aero Engines, with the most bullish analyst valuing it at €530 and the most bearish at €310 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 MTU Aero Engines' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 8.2% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 21% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than MTU Aero Engines.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that MTU Aero Engines' revenue is expected to perform worse 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for MTU Aero Engines going out to 2028, and you can see them free on our platform here.

You can also see our analysis of MTU Aero Engines' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.