Yahoo Finance Global Business Travel Group, Inc. Just Missed Earnings; Here's What Analysts Are Forecasting Now
Global Business Travel Group, Inc. (NYSE:GBTG) shareholders are probably feeling a little disappointed, since its shares fell 2.6% to US$6.00 in the week after its latest quarterly results. Revenues fell 2.3% short of expectations, at US$610m. Earnings correspondingly dipped, with Global Business Travel Group reporting a statutory loss of US$0.04 per share, whereas the analysts had previously modelled a profit in this period. 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.
Check out our latest analysis for Global Business Travel Group
Taking into account the latest results, the current consensus from Global Business Travel Group's five analysts is for revenues of US$2.48b in 2024. This would reflect a reasonable 7.0% increase on its revenue over the past 12 months. Earnings are expected to improve, with Global Business Travel Group forecast to report a statutory profit of US$0.075 per share. In the lead-up to this report, the analysts had been modelling revenues of US$2.48b and earnings per share (EPS) of US$0.075 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$8.00. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Global Business Travel Group analyst has a price target of US$9.00 per share, while the most pessimistic values it at US$7.00. This is a very narrow spread of estimates, implying either that Global Business Travel Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Global Business Travel Group'shistorical trends, as the 9.4% annualised revenue growth to the end of 2024 is roughly in line with the 12% annual growth over the past year. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 9.7% per year. It's clear that while Global Business Travel Group's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 Global Business Travel Group going out to 2026, and you can see them free on our platform here.
You can also view our analysis of Global Business Travel Group's balance sheet, and whether we think Global Business Travel Group is carrying too much debt, for free on our platform here.
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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.