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

Investors in FinecoBank Banca Fineco S.p.A. (BIT:FBK) had a good week, as its shares rose 4.8% to close at €14.99 following the release of its first-quarter results. It was an okay report, and revenues came in at €327m, approximately in line with analyst estimates leading up to the results announcement. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for FinecoBank Banca Fineco

Taking into account the latest results, FinecoBank Banca Fineco's twelve analysts currently expect revenues in 2024 to be €1.26b, approximately in line with the last 12 months. Statutory per share are forecast to be €1.00, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €1.24b and earnings per share (EPS) of €0.97 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at €15.30, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 FinecoBank Banca Fineco at €17.00 per share, while the most bearish prices it at €12.60. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.7% by the end of 2024. This indicates a significant reduction from annual growth of 14% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 1.3% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - FinecoBank Banca Fineco is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around FinecoBank Banca Fineco's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that FinecoBank Banca Fineco'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.

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. We have forecasts for FinecoBank Banca Fineco going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for FinecoBank Banca Fineco you should be aware of, and 1 of them is a bit unpleasant.

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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.