Credito Emiliano S.p.A. Just Recorded A 13% EPS Beat: Here's What Analysts Are Forecasting Next

Shareholders of Credito Emiliano S.p.A. (BIT:CE) will be pleased this week, given that the stock price is up 12% to €7.22 following its latest full-year results. It looks like a credible result overall - although revenues of €1.3b were in line with what the analysts predicted, Credito Emiliano surprised by delivering a statutory profit of €1.05 per share, a notable 13% above expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Credito Emiliano after the latest results.

See our latest analysis for Credito Emiliano

Following the latest results, Credito Emiliano's six analysts are now forecasting revenues of €1.34b in 2022. This would be a reasonable 3.7% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to crater 34% to €0.69 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.31b and earnings per share (EPS) of €0.62 in 2022. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a decent improvement in earnings per share in particular.

It will come as no surprise to learn that the analysts have increased their price target for Credito Emiliano 9.2% to €7.14on the back of these upgrades. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Credito Emiliano, with the most bullish analyst valuing it at €8.60 and the most bearish at €5.30 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 3.7% growth on an annualised basis. That is in line with its 3.4% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 6.2% annually. So it's pretty clear that Credito Emiliano is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Credito Emiliano's earnings potential next year. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Credito Emiliano going out to 2024, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 3 warning signs for Credito Emiliano (1 is significant!) that 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.