UK-based companies Aston Martin Lagonda Global Holdings (GB:AML) and International Consolidated Airlines (GB:IAG) are set to announce their Q1 earnings for 2023 this week. Analysts are bullish on the overall 2023 numbers for these companies, as they are well-placed on the recovery path after getting hit by the pandemic.
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TipRanks Earnings Calendar for the UK market presents the latest details about the upcoming earnings announcements, including EPS and sales forecasts. The calendar can be filtered by various criteria, such as sector, rating, market capitalization, and more.
Let’s take a look at the details.
Aston Martin Lagonda Global Holdings PLC
Aston Martin is a manufacturer of high-end sports cars and possesses several dominant brand names in its portfolio.
The company will publish its first-quarter results this week, on May 3. The consensus EPS forecast for the quarter is negative 0.09p per share, which is an improvement over the negative EPS of 0.34p in the corresponding period last year.
As the company had already shown signs of recovery in its 2022 results, it is expecting substantial profitability growth, driven mainly by improved volumes and increased gross margins in both core and special vehicles.
Moving forward, around 80% of the existing assortment of GT/sports cars has been booked for 2023. The company has stated that it anticipates noteworthy profitability growth in 2023 when compared to 2022, which would imply a reduction in losses. City analysts have predicted a net loss of £152 million for 2023. This would be a significant improvement over last year’s losses of £528 million.
Aston Martin Stock Forecast
Over the past six months, the company’s stock has surged, delivering a return of almost 170%. This could explain why analysts perceive no additional potential for an increase in the stock’s value.
According to TipRanks, AML stock has a Hold rating with an average price target of 188.29p. This is 22% lower than the current price level.
International Consolidated Airlines Group
IAG is a conglomerate that possesses the leading airlines in Ireland, Spain, and the UK, providing them with support to enhance their market presence.
The company will publish its first-quarter results for 2023 on May 5. With the airlines’ recovery back in full swing, IAG is forecasting a remarkable 2023 in comparison to previous periods. On TipRanks, the consensus EPS forecast is 0.18p, much higher than the negative EPS of 0.14p in Q1 2022.
In 2022, the company reported its first net profit of €431 million since the beginning of the pandemic. For 2023, the company is predicting a profit increase of 90%, ranging from €1.8 billion to €2.3 billion. However, this will still be below the pre-pandemic level of €3.3 billion recorded in 2019. The company is undertaking significant initiatives to enhance the customer experience and operational performance, with the goal of restoring IAG’s profitability to pre-COVID levels within the next few years.
What is the Target for IAG stock?
IAG stock has a Moderate Buy rating on TipRanks backed by seven Buy and six Hold recommendations.
The average price prediction is 191.7p, which implies an upside of 26.17% from the current level. The target price has a high forecast of 240p and a low forecast of 160.3p.
Conclusion
In terms of share price appreciation, analysts have mixed views on these companies. AML has a Hold rating and no further upside potential, while IAG has a Moderate Buy rating and a growth potential of more than 25% in its share price.
