Leonardo S.p.a. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Leonardo S.p.a. (BIT:LDO) just released its first-quarter report and things are looking bullish. The company beat forecasts, with revenue of €3.7b, some 8.5% above estimates, and statutory earnings per share (EPS) coming in at €0.78, 763% ahead of expectations. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Leonardo

Taking into account the latest results, the current consensus from Leonardo's 14 analysts is for revenues of €16.7b in 2024. This would reflect a reasonable 4.9% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 21% to €1.48. Before this earnings report, the analysts had been forecasting revenues of €16.7b and earnings per share (EPS) of €1.41 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at €23.62, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on Leonardo, with the most bullish analyst valuing it at €29.00 and the most bearish at €16.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. The analysts are definitely expecting Leonardo's growth to accelerate, with the forecast 6.6% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.8% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 5.7% per year. Leonardo is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Leonardo's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Leonardo. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Leonardo going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Leonardo has 1 warning sign we think you should be aware 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.