€3.63 - That's What Analysts Think EuroGroup Laminations S.p.A. (BIT:EGLA) Is Worth After These Results

Last week saw the newest quarterly earnings release from EuroGroup Laminations S.p.A. (BIT:EGLA), an important milestone in the company's journey to build a stronger business. EuroGroup Laminations reported in line with analyst predictions, delivering revenues of €221m and statutory earnings per share of €0.19, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for EuroGroup Laminations from four analysts is for revenues of €935.0m in 2025. If met, it would imply a reasonable 6.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 18% to €0.12. Before this earnings report, the analysts had been forecasting revenues of €955.3m and earnings per share (EPS) of €0.11 in 2025. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

See our latest analysis for EuroGroup Laminations

There's been a 22% lift in the price target to €3.63, with the analysts signalling that the higher earnings forecasts are more relevant to the business than the weaker revenue estimates. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic EuroGroup Laminations analyst has a price target of €3.85 per share, while the most pessimistic values it at €3.20. This is a very narrow spread of estimates, implying either that EuroGroup Laminations is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that EuroGroup Laminations' rate of growth is expected to accelerate meaningfully, with the forecast 8.1% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 0.9% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect EuroGroup Laminations to grow faster than the wider 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 EuroGroup Laminations following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Still, earnings per share are more important to value creation for shareholders. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 EuroGroup Laminations going out to 2027, and you can see them free on our platform here..

Even so, be aware that EuroGroup Laminations is showing 3 warning signs in our investment analysis , and 2 of those are concerning...

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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.