Stock Analysis

Webuild S.p.A. (BIT:WBD) Analysts Are Pretty Bullish On The Stock After Recent Results

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It's been a pretty great week for Webuild S.p.A. (BIT:WBD) shareholders, with its shares surging 11% to €1.90 in the week since its latest yearly results. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 2.4%to hit €8.1b. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Webuild after the latest results.

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BIT:WBD Earnings and Revenue Growth March 19th 2023

Following the latest results, Webuild's three analysts are now forecasting revenues of €8.75b in 2023. This would be a decent 8.1% improvement in sales compared to the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €7.80b and earnings per share (EPS) of €0.10 in 2023. What's really interesting is that while the consensus made a nice gain to revenue estimates, it no longer provides an earnings per share estimate, suggesting that - following the latest results - revenues are now the focus of the business.

The average price target rose 9.8% to €2.25, with the analysts clearly having become more optimistic about Webuild'sprospects following these results. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Webuild, with the most bullish analyst valuing it at €2.40 and the most bearish at €2.10 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Webuild's past performance and to peers in the same industry. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 8.1% growth on an annualised basis. That is in line with its 8.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.5% annually. So although Webuild is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away is that the analysts upgraded their revenue estimates for next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Webuild will grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

At least one of Webuild's three analysts has provided estimates out to 2025, which can be seen for free on our platform here.

Before you take the next step you should know about the 3 warning signs for Webuild that we have uncovered.

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