Edil San Felice S.p.A. (BIT:ESF) Analysts Just Cut Their EPS Forecasts Substantially

The analysts covering Edil San Felice S.p.A. (BIT:ESF) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

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Following the downgrade, the current consensus from Edil San Felice's two analysts is for revenues of €57m in 2025 which - if met - would reflect a huge 41% increase on its sales over the past 12 months. Statutory earnings per share are presumed to jump 25% to €0.42. Before this latest update, the analysts had been forecasting revenues of €63m and earnings per share (EPS) of €0.54 in 2025. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.

Check out our latest analysis for Edil San Felice

The consensus price target fell 6.0% to €5.50, with the weaker earnings outlook clearly leading analyst valuation estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Edil San Felice's rate of growth is expected to accelerate meaningfully, with the forecast 41% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 15% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Edil San Felice is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Edil San Felice.

That said, the analysts might have good reason to be negative on Edil San Felice, given concerns around earnings quality. For more information, you can click here to discover this and the 2 other concerns we've identified.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.