Industria de Diseño Textil, S.A. (BME:ITX) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

It's been a sad week for Industria de Diseño Textil, S.A. (BME:ITX), who've watched their investment drop 11% to €44.85 in the week since the company reported its yearly result. Results were roughly in line with estimates, with revenues of €39b and statutory earnings per share of €1.88. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Industria de Diseño Textil

After the latest results, the 20 analysts covering Industria de Diseño Textil are now predicting revenues of €41.6b in 2026. If met, this would reflect an okay 7.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 7.6% to €2.03. Before this earnings report, the analysts had been forecasting revenues of €42.1b and earnings per share (EPS) of €2.08 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at €51.75, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic Industria de Diseño Textil analyst has a price target of €60.00 per share, while the most pessimistic values it at €37.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. It's pretty clear that there is an expectation that Industria de Diseño Textil's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.6% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.1% annually. Factoring in the forecast slowdown in growth, it looks like Industria de Diseño Textil 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. 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.

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

Plus, you should also learn about the 1 warning sign we've spotted with Industria de Diseño Textil .

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