Results: Civitanavi Systems S.p.A. Beat Earnings Expectations And Analysts Now Have New Forecasts

A week ago, Civitanavi Systems S.p.A. (BIT:CNS) came out with a strong set of annual numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 5.0% to hit €34m. Civitanavi Systems also reported a statutory profit of €0.23, which was an impressive 25% above what the analysts had forecast. 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.

Check out our latest analysis for Civitanavi Systems

Taking into account the latest results, the most recent consensus for Civitanavi Systems from twin analysts is for revenues of €43.0m in 2023 which, if met, would be a major 26% increase on its sales over the past 12 months. Statutory earnings per share are forecast to plummet 40% to €0.14 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €43.3m and earnings per share (EPS) of €0.23 in 2023. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at €5.25, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Civitanavi Systems'historical trends, as the 26% annualised revenue growth to the end of 2023 is roughly in line with the 24% annual revenue growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.0% per year. So it's pretty clear that Civitanavi Systems is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at €5.25, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Civitanavi Systems that you need to be mindful 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.