Pirelli & C. S.p.A. Beat Revenue Forecasts By 5.1%: Here's What Analysts Are Forecasting Next

Investors in Pirelli & C. S.p.A. (BIT:PIRC) had a good week, as its shares rose 2.7% to close at €5.53 following the release of its full-year results. Results overall were respectable, with statutory earnings of €0.47 per share roughly in line with what the analysts had forecast. Revenues of €7.0b came in 5.1% ahead of analyst predictions. 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.

We've discovered 1 warning sign about Pirelli & C. View them for free.

Taking into account the latest results, the current consensus, from the 13 analysts covering Pirelli & C, is for revenues of €6.87b in 2025. This implies a measurable 2.6% reduction in Pirelli & C's revenue over the past 12 months. Per-share earnings are expected to grow 11% to €0.52. In the lead-up to this report, the analysts had been modelling revenues of €6.89b and earnings per share (EPS) of €0.53 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.

View our latest analysis for Pirelli & C

There were no changes to revenue or earnings estimates or the price target of €6.64, suggesting that the company has met expectations in its recent result. 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. The most optimistic Pirelli & C analyst has a price target of €7.20 per share, while the most pessimistic values it at €5.20. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.6% by the end of 2025. This indicates a significant reduction from annual growth of 8.9% 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 2.7% annually for the foreseeable future. It's pretty clear that Pirelli & C's revenues are expected to perform substantially worse than the wider industry.

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 in mind, we wouldn't be too quick to come to a conclusion on Pirelli & C. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Pirelli & C 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 Pirelli & C 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.