Earnings Update: Indel B S.p.A. (BIT:INDB) Just Reported And Analysts Are Trimming Their Forecasts

Indel B S.p.A. (BIT:INDB) shareholders are probably feeling a little disappointed, since its shares fell 5.0% to €22.60 in the week after its latest annual results. Revenues were €221m, with Indel B reporting some 3.4% below analyst expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Indel B

Taking into account the latest results, the current consensus, from the three analysts covering Indel B, is for revenues of €210.1m in 2024. This implies a discernible 5.0% reduction in Indel B's revenue over the past 12 months. Per-share earnings are expected to jump 23% to €2.27. Before this earnings report, the analysts had been forecasting revenues of €226.9m and earnings per share (EPS) of €2.77 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

The analysts made no major changes to their price target of €28.70, suggesting the downgrades are not expected to have a long-term impact on Indel B's valuation. 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 Indel B at €31.00 per share, while the most bearish prices it at €26.50. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 5.0% annualised decline to the end of 2024. That is a notable change from historical growth of 12% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.1% annually for the foreseeable future. It's pretty clear that Indel B's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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 Indel B analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Indel B is showing 1 warning sign in our investment analysis , you should know about...

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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.