Credito Emiliano S.p.A. Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

Shareholders might have noticed that Credito Emiliano S.p.A. (BIT:CE) filed its half-yearly result this time last week. The early response was not positive, with shares down 6.1% to €9.13 in the past week. Revenues were €891m, 11% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of €1.65 being in line with what the analysts forecast. 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.

Check out our latest analysis for Credito Emiliano

Following last week's earnings report, Credito Emiliano's six analysts are forecasting 2024 revenues to be €1.91b, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €1.91b and earnings per share (EPS) of €1.62 in 2024. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

We'd also point out that thatthe analysts have made no major changes to their price target of €11.60. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Credito Emiliano at €12.98 per share, while the most bearish prices it at €10.60. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 Credito Emiliano's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.4% growth on an annualised basis. This is compared to a historical growth rate of 13% 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) 1.2% annually. Factoring in the forecast slowdown in growth, it looks like Credito Emiliano is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

At least one of Credito Emiliano's six analysts has provided estimates out to 2026, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Credito Emiliano (of which 1 makes us a bit uncomfortable!) you should know about.

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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.