Earnings Update: Carel Industries S.p.A. (BIT:CRL) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

It's been a good week for Carel Industries S.p.A. (BIT:CRL) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.3% to €19.66. Carel Industries reported in line with analyst predictions, delivering revenues of €147m and statutory earnings per share of €0.56, suggesting the business is executing well and in line with its plan. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, Carel Industries' four analysts are now forecasting revenues of €625.3m in 2025. This would be a satisfactory 7.9% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be €0.51, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €626.3m and earnings per share (EPS) of €0.54 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for Carel Industries

The consensus price target held steady at €20.38, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Carel Industries, with the most bullish analyst valuing it at €25.00 and the most bearish at €16.90 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Carel Industries shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Carel Industries' revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.4% per year. Even after the forecast slowdown in growth, it seems obvious that Carel Industries is also expected to grow faster than the wider 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 that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Carel Industries analysts - going out to 2027, and you can see them free on our platform here.

You can also see whether Carel Industries is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.