Analysts Are Updating Their Sabaf S.p.A. (BIT:SAB) Estimates After Its Third-Quarter Results

Sabaf S.p.A. (BIT:SAB) shareholders are probably feeling a little disappointed, since its shares fell 3.6% to €17.45 in the week after its latest quarterly results. Revenues came in 2.8% below expectations, at €69m. Statutory earnings per share were relatively better off, with a per-share profit of €0.26 being roughly in line with analyst estimates. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Sabaf

Taking into account the latest results, the current consensus from Sabaf's two analysts is for revenues of €297.5m in 2025. This would reflect a reasonable 7.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 70% to €1.53. Yet prior to the latest earnings, the analysts had been anticipated revenues of €300.0m and earnings per share (EPS) of €1.61 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at €23.50, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

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 Sabaf's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.1% growth on an annualised basis. This is compared to a historical growth rate of 9.8% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.9% annually. Factoring in the forecast slowdown in growth, it looks like Sabaf is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sabaf. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 analyst estimates for Sabaf going out as far as 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Sabaf .

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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.