Earnings Miss: Prysmian S.p.A. Missed EPS By 42% And Analysts Are Revising Their Forecasts

It's been a good week for Prysmian S.p.A. (BIT:PRY) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.5% to €52.76. Results overall were not great, with earnings of €0.52 per share falling drastically short of analyst expectations. Meanwhile revenues hit €4.8b and were slightly better than forecasts. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the 16 analysts covering Prysmian are now predicting revenues of €19.3b in 2025. If met, this would reflect a satisfactory 6.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 42% to €3.43. Yet prior to the latest earnings, the analysts had been anticipated revenues of €19.5b and earnings per share (EPS) of €3.45 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.

See our latest analysis for Prysmian

The analysts reconfirmed their price target of €65.93, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Prysmian analyst has a price target of €77.00 per share, while the most pessimistic values it at €36.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Prysmian's past performance and to peers in the same industry. We would highlight that Prysmian's revenue growth is expected to slow, with the forecast 8.1% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.3% per year. Even after the forecast slowdown in growth, it seems obvious that Prysmian is also expected to grow faster 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €65.93, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Prysmian going out to 2027, and you can see them free on our platform here..

Even so, be aware that Prysmian is showing 2 warning signs in our investment analysis , 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.