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

A week ago, Leonardo S.p.a. (BIT:LDO) came out with a strong set of yearly numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 2.3% to hit €18b. Leonardo reported statutory earnings per share (EPS) €1.86, which was a notable 12% above what the analysts had forecast. 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 Leonardo

After the latest results, the 13 analysts covering Leonardo are now predicting revenues of €18.6b in 2025. If met, this would reflect a satisfactory 4.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 9.0% to €1.69 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €18.5b and earnings per share (EPS) of €1.70 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target rose 8.2% to €39.63despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Leonardo's earnings by assigning a price premium. 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. There are some variant perceptions on Leonardo, with the most bullish analyst valuing it at €50.00 and the most bearish at €25.10 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 4.7% growth on an annualised basis. That is in line with its 4.8% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 10% per year. So although Leonardo is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. 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 Leonardo going out to 2027, 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.