Analysts Have Made A Financial Statement On Industrie De Nora S.p.A.'s (BIT:DNR) First-Quarter Report

Investors in Industrie De Nora S.p.A. (BIT:DNR) had a good week, as its shares rose 6.0% to close at €13.28 following the release of its first-quarter results. It was a negative result overall, with revenues coming in 12% less than what the analysts expected, at €189m. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Industrie De Nora

Taking into account the latest results, the current consensus from Industrie De Nora's three analysts is for revenues of €889.0m in 2024. This would reflect an okay 5.8% increase on its revenue over the past 12 months. Statutory earnings per share are expected to plunge 69% to €0.35 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €920.9m and earnings per share (EPS) of €0.42 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

The analysts made no major changes to their price target of €17.00, suggesting the downgrades are not expected to have a long-term impact on Industrie De Nora's valuation. 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. The most optimistic Industrie De Nora analyst has a price target of €20.50 per share, while the most pessimistic values it at €16.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business 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. For example, we noticed that Industrie De Nora's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 7.8% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 3.7% a year over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 4.8% per year. Not only are Industrie De Nora's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Industrie De Nora. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at €17.00, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Industrie De Nora. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Industrie De Nora analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Industrie De Nora 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.