Banca Sistema S.p.A. (BIT:BST) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Last week saw the newest quarterly earnings release from Banca Sistema S.p.A. (BIT:BST), an important milestone in the company's journey to build a stronger business. Results look mixed - while revenue fell marginally short of analyst estimates at €24m, statutory earnings were in line with expectations, at €0.29 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Banca Sistema

Following the latest results, Banca Sistema's three analysts are now forecasting revenues of €109.0m in 2022. This would be a solid 12% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to rise 4.8% to €0.30. In the lead-up to this report, the analysts had been modelling revenues of €112.5m and earnings per share (EPS) of €0.30 in 2022. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The consensus has reconfirmed its price target of €2.48, showing that the analysts don't expect weaker sales expectations next year to have a material impact on Banca Sistema's market value. 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. Currently, the most bullish analyst values Banca Sistema at €2.65 per share, while the most bearish prices it at €2.30. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Banca Sistema's growth to accelerate, with the forecast 16% annualised growth to the end of 2022 ranking favourably alongside historical growth of 6.1% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Banca Sistema is expected to grow much faster than its 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, earnings are more important to the intrinsic value of the business. 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 forecasts for Banca Sistema going out to 2024, and you can see them free on our platform here.

You still need to take note of risks, for example - Banca Sistema 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.