Indel B S.p.A. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Indel B S.p.A. (BIT:INDB) just released its annual report and things are looking bullish. Indel B beat earnings, with revenues hitting €188m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 15%. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

Check out our latest analysis for Indel B

Following the latest results, Indel B's solitary analyst are now forecasting revenues of €200.4m in 2022. This would be an okay 6.4% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to plummet 36% to €2.75 in the same period. Before this earnings report, the analyst had been forecasting revenues of €186.5m and earnings per share (EPS) of €2.60 in 2022. It looks like there's been a modest increase in sentiment following the latest results, withthe analyst becoming a bit more optimistic in their predictions for both revenues and earnings.

Despite these upgrades,the analyst has not made any major changes to their price target of €32.00, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Indel B's revenue growth is expected to slow, with the forecast 6.4% annualised growth rate until the end of 2022 being well below the historical 9.8% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.7% annually. So it's pretty clear that, while Indel B's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Indel B's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. The consensus price target held steady at €32.00, with the latest estimates not enough to have an impact on their price target.

With that in mind, we wouldn't be too quick to come to a conclusion on Indel B. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Indel B going out as far as 2023, and you can see them free on our platform here.

Even so, be aware that Indel B is showing 2 warning signs in our investment analysis , and 1 of those is potentially serious...

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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.