Analyst Estimates: Here's What Brokers Think Of FTAI Aviation Ltd. (NASDAQ:FTAI) After Its Third-Quarter Report
It's been a good week for FTAI Aviation Ltd. (NASDAQ:FTAI) shareholders, because the company has just released its latest quarterly results, and the shares gained 7.4% to US$180. Results look mixed - while revenue fell marginally short of analyst estimates at US$978m, statutory earnings were in line with expectations, at US$1.43 per share. 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.
Following the latest results, FTAI Aviation's nine analysts are now forecasting revenues of US$6.54b in 2027. This would be a sizeable 91% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 161% to US$13.09. In the lead-up to this report, the analysts had been modelling revenues of US$6.49b and earnings per share (EPS) of US$12.99 in 2027. 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.
See our latest analysis for FTAI Aviation
There were no changes to revenue or earnings estimates or the price target of US$343, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on FTAI Aviation, with the most bullish analyst valuing it at US$540 and the most bearish at US$265 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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 clear from the latest estimates that FTAI Aviation's rate of growth is expected to accelerate meaningfully, with the forecast 68% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 41% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect FTAI Aviation to grow faster than the wider industry.
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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$343, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for FTAI Aviation going out to 2028, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with FTAI Aviation , and understanding them should be part of your investment process.
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