Brembo N.V. Just Missed Earnings - But Analysts Have Updated Their Models

The analysts might have been a bit too bullish on Brembo N.V. (BIT:BRE), given that the company fell short of expectations when it released its interim results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at €1.9b, statutory earnings missed forecasts by 14%, coming in at just €0.31 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, Brembo's nine analysts currently expect revenues in 2025 to be €3.75b, approximately in line with the last 12 months. Statutory per share are forecast to be €0.64, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €3.80b and earnings per share (EPS) of €0.71 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

See our latest analysis for Brembo

It might be a surprise to learn that the consensus price target was broadly unchanged at €9.21, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on Brembo, with the most bullish analyst valuing it at €11.00 and the most bearish at €7.60 per share. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.6% by the end of 2025. This indicates a significant reduction from annual growth of 12% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Brembo is expected to lag 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Brembo's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €9.21, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Brembo. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Brembo analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Brembo you should be aware of.

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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.