New Forecasts: Here's What Analysts Think The Future Holds For B&C Speakers S.p.A. (BIT:BEC)

B&C Speakers S.p.A. (BIT:BEC) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance.

After this upgrade, B&C Speakers' solo analyst is now forecasting revenues of €75m in 2022. This would be a meaningful 20% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 43% to €0.97. Before this latest update, the analyst had been forecasting revenues of €61m and earnings per share (EPS) of €0.67 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for B&C Speakers

Despite these upgrades, the analyst has not made any major changes to their price target of €17.19, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

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. The analyst is definitely expecting B&C Speakers' growth to accelerate, with the forecast 20% annualised growth to the end of 2022 ranking favourably alongside historical growth of 0.05% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect B&C Speakers to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at B&C Speakers.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential risk with B&C Speakers, including concerns around earnings quality. You can learn more, and discover the 1 other risk 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 upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.