Bearish: Analysts Just Cut Their Abitare In S.p.A. (BIT:ABT) Revenue and EPS estimates

The analysts covering Abitare In S.p.A. (BIT:ABT) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the downgrade, the latest consensus from Abitare In's dual analysts is for revenues of €84m in 2024, which would reflect a substantial 46% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 116% to €0.36. Prior to this update, the analysts had been forecasting revenues of €98m and earnings per share (EPS) of €0.59 in 2024. Indeed, we can see that the analysts are a lot more bearish about Abitare In's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Abitare In

Analysts made no major changes to their price target of €6.80, suggesting the downgrades are not expected to have a long-term impact on Abitare In's valuation.

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. We can infer from the latest estimates that forecasts expect a continuation of Abitare In'shistorical trends, as the 46% annualised revenue growth to the end of 2024 is roughly in line with the 48% annual revenue 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 7.5% per year. So it's pretty clear that Abitare In is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Abitare In. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on Abitare In after the downgrade.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Abitare In, including its declining profit margins. Learn more, and discover the 2 other concerns we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.