De'Longhi S.p.A. (BIT:DLG) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

Investors in De'Longhi S.p.A. (BIT:DLG) had a good week, as its shares rose 7.5% to close at €29.78 following the release of its quarterly results. It was a credible result overall, with revenues of €806m and statutory earnings per share of €1.65 both in line with analyst estimates, showing that De'Longhi is executing in line with expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for De'Longhi

Taking into account the latest results, the consensus forecast from De'Longhi's seven analysts is for revenues of €3.62b in 2025. This reflects a notable 9.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 16% to €2.17. In the lead-up to this report, the analysts had been modelling revenues of €3.59b and earnings per share (EPS) of €2.10 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at €37.21, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on De'Longhi, with the most bullish analyst valuing it at €43.50 and the most bearish at €32.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await De'Longhi shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of De'Longhi'shistorical trends, as the 7.8% annualised revenue growth to the end of 2025 is roughly in line with the 8.7% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.9% annually. So although De'Longhi is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around De'Longhi's earnings potential next year. 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 forecasts for De'Longhi going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with De'Longhi , and understanding it should be part of your investment process.

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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.