Racing Force S.P.A. (BIT:RFG) Annual Results: Here's What Analysts Are Forecasting For This Year

It's been a good week for Racing Force S.P.A. (BIT:RFG) shareholders, because the company has just released its latest full-year results, and the shares gained 3.4% to €5.48. It was an okay result overall, with revenues coming in at €59m, roughly what the analysts had been expecting. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Racing Force after the latest results.

View our latest analysis for Racing Force

Taking into account the latest results, the current consensus from Racing Force's dual analysts is for revenues of €64.5m in 2023, which would reflect a decent 9.6% increase on its sales over the past 12 months. Before this earnings report, the analysts had been forecasting revenues of €66.0m and earnings per share (EPS) of €0.28 in 2023. Overall, while there's been a minor downgrade to revenue estimates, the consensus now no longer provides an EPS estimate, suggesting that the market believes revenue is more important following the latest results.

We'd also point out that thatthe analysts have made no major changes to their price target of €6.55.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Racing Force's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 9.6% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past year. Compare this to the 38 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 11% per year. Factoring in the forecast slowdown in growth, it looks like Racing Force is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The clear low-light was that the analysts cut their forecast revenue estimates for Racing Force next year. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at €6.55, with the latest estimates not enough to have an impact on their price targets.

At least one of Racing Force's dual analysts has provided estimates out to 2025, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Racing Force (1 doesn't sit too well with us!) that you should be aware of.

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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.