The Brunello Cucinelli S.p.A. (BIT:BC) Interim Results Are Out And Analysts Have Published New Forecasts

Brunello Cucinelli S.p.A. (BIT:BC) came out with its half-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results were roughly in line with estimates, with revenues of €621m and statutory earnings per share of €0.90. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Brunello Cucinelli

Following the latest results, Brunello Cucinelli's ten analysts are now forecasting revenues of €1.27b in 2024. This would be an okay 4.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 9.8% to €1.84. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.27b and earnings per share (EPS) of €1.85 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €110. 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 Brunello Cucinelli at €130 per share, while the most bearish prices it at €97.00. This is a very narrow spread of estimates, implying either that Brunello Cucinelli is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's pretty clear that there is an expectation that Brunello Cucinelli's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 9.2% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Compare this to the 20 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 8.7% per year. So it's pretty clear that, while Brunello Cucinelli's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Brunello Cucinelli analysts - going out to 2026, and you can see them free on our platform here.

You can also see whether Brunello Cucinelli is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.