Deutsche Lufthansa AG Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Shareholders of Deutsche Lufthansa AG (ETR:LHA) will be pleased this week, given that the stock price is up 13% to €8.19 following its latest quarterly results. Revenues were €12b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of €1.05 were also better than expected, beating analyst predictions by 14%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Taking into account the latest results, the consensus forecast from Deutsche Lufthansa's 13 analysts is for revenues of €44.9b in 2027. This reflects a satisfactory 6.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 57% to €1.27. Yet prior to the latest earnings, the analysts had been anticipated revenues of €44.5b and earnings per share (EPS) of €1.24 in 2027. So the consensus seems to have become somewhat more optimistic on Deutsche Lufthansa's earnings potential following these results.

Check out our latest analysis for Deutsche Lufthansa

There's been no major changes to the consensus price target of €9.21, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Deutsche Lufthansa, with the most bullish analyst valuing it at €21.00 and the most bearish at €6.00 per share. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Deutsche Lufthansa's past performance and to peers in the same industry. We would highlight that Deutsche Lufthansa's revenue growth is expected to slow, with the forecast 5.2% annualised growth rate until the end of 2027 being well below the historical 14% p.a. growth over the last five years. Compare this to the 13 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.6% per year. So it's pretty clear that, while Deutsche Lufthansa's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Deutsche Lufthansa's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at €9.21, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Deutsche Lufthansa. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Deutsche Lufthansa analysts - going out to 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Deutsche Lufthansa you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.