Earnings Update: Pirelli & C. S.p.A. (BIT:PIRC) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts

It's been a good week for Pirelli & C. S.p.A. (BIT:PIRC) shareholders, because the company has just released its latest annual results, and the shares gained 5.5% to €6.03. Results were roughly in line with estimates, with revenues of €6.8b and statutory earnings per share of €0.47. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Pirelli & C

Following last week's earnings report, Pirelli & C's 14 analysts are forecasting 2025 revenues to be €6.89b, approximately in line with the last 12 months. Per-share earnings are expected to increase 8.7% to €0.54. In the lead-up to this report, the analysts had been modelling revenues of €6.88b and earnings per share (EPS) of €0.54 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of €6.63, 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 Pirelli & C, with the most bullish analyst valuing it at €7.20 and the most bearish at €4.60 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Pirelli & C shareholders.

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 Pirelli & C's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.7% growth on an annualised basis. This is compared to a historical growth rate of 8.7% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 2.8% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Pirelli & C.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Pirelli & C's revenue is expected to perform worse than 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Pirelli & C analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Pirelli & C has 1 warning sign we think 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.