Industrie De Nora S.p.A. (BIT:DNR) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Industrie De Nora S.p.A. (BIT:DNR) shareholders are probably feeling a little disappointed, since its shares fell 7.4% to €18.27 in the week after its latest quarterly results. Results were roughly in line with estimates, with revenues of €217m and statutory earnings per share of €0.47. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Industrie De Nora

Taking into account the latest results, the most recent consensus for Industrie De Nora from three analysts is for revenues of €914.4m in 2023. If met, it would imply a credible 5.3% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 69% to €0.81. Before this earnings report, the analysts had been forecasting revenues of €933.2m and earnings per share (EPS) of €0.57 in 2023. Although the analysts have lowered their revenue forecasts, they've also made a sizeable expansion in their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.

There's been no real change to the average price target of €24.67, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Industrie De Nora, with the most bullish analyst valuing it at €25.50 and the most bearish at €23.50 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 would highlight that Industrie De Nora's revenue growth is expected to slow, with the forecast 7.2% annualised growth rate until the end of 2023 being well below the historical 12% growth over the last year. Compare this to the 28 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.9% per year. So it's pretty clear that, while Industrie De Nora's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Industrie De Nora following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Even so, long term profitability is more important for the value creation process. 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. At Simply Wall St, we have a full range of analyst estimates for Industrie De Nora going out to 2025, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Industrie De Nora that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.