Results: Maire Tecnimont S.p.A. Beat Earnings Expectations And Analysts Now Have New Forecasts

The investors in Maire Tecnimont S.p.A.'s (BIT:MAIRE) will be rubbing their hands together with glee today, after the share price leapt 27% to €6.76 in the week following its annual results. The result was positive overall - although revenues of €4.3b were in line with what the analysts predicted, Maire Tecnimont surprised by delivering a statutory profit of €0.38 per share, modestly greater than expected. 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.

See our latest analysis for Maire Tecnimont

Taking into account the latest results, the current consensus from Maire Tecnimont's six analysts is for revenues of €5.97b in 2024. This would reflect a huge 40% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 54% to €0.59. Before this earnings report, the analysts had been forecasting revenues of €5.23b and earnings per share (EPS) of €0.48 in 2024. There has definitely been an improvement in perception after these results, with the analysts noticeably increasing both their earnings and revenue estimates.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 26% to €7.24per share. 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. Currently, the most bullish analyst values Maire Tecnimont at €8.20 per share, while the most bearish prices it at €6.30. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. The analysts are definitely expecting Maire Tecnimont's growth to accelerate, with the forecast 40% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Maire Tecnimont is expected to grow much faster than its 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 Maire Tecnimont following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Maire Tecnimont going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Maire Tecnimont you should know about.

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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.