eDreams ODIGEO S.A. Beat Revenue Forecasts By 5.4%: Here's What Analysts Are Forecasting Next
There's been a notable change in appetite for eDreams ODIGEO S.A. (BME:EDR) shares in the week since its first-quarter report, with the stock down 11% to €4.96. Results overall were respectable, with statutory earnings of €0.45 per share roughly in line with what the analysts had forecast. Revenues of €166m came in 5.4% ahead of analyst predictions. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus from eDreams ODIGEO's four analysts is for revenues of €690.8m in 2027. This would reflect a credible 4.4% increase on its revenue over the past 12 months. Statutory earnings per share are expected to nosedive 61% to €0.15 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €685.4m and earnings per share (EPS) of €0.22 in 2027. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.
Check out our latest analysis for eDreams ODIGEO
Despite cutting their earnings forecasts,the analysts have lifted their price target 6.9% to €6.22, suggesting that these impacts are not expected to weigh on the stock's value in the long term. 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 eDreams ODIGEO, with the most bullish analyst valuing it at €7.50 and the most bearish at €4.60 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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 eDreams ODIGEO's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 6.0% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. Compare this to the 9 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.9% per year. Factoring in the forecast slowdown in growth, it looks like eDreams ODIGEO is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for eDreams ODIGEO going out to 2029, and you can see them free on our platform here.
Before you take the next step you should know about the 3 warning signs for eDreams ODIGEO (1 is a bit unpleasant!) that we have uncovered.
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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.