Analysts Have Made A Financial Statement On Sabaf S.p.A.'s (BIT:SAB) Interim Report

It's been a good week for Sabaf S.p.A. (BIT:SAB) shareholders, because the company has just released its latest half-year results, and the shares gained 3.3% to €18.60. Results overall were respectable, with statutory earnings of €0.26 per share roughly in line with what the analysts had forecast. Revenues of €143m came in 2.7% ahead of analyst predictions. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Sabaf

Taking into account the latest results, the consensus forecast from Sabaf's dual analysts is for revenues of €285.0m in 2024. This reflects an okay 3.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 14% to €1.18. In the lead-up to this report, the analysts had been modelling revenues of €272.9m and earnings per share (EPS) of €1.17 in 2024. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.

Even though revenue forecasts increased, there was no change to the consensus price target of €22.50, suggesting the analysts are focused on earnings as the driver of value creation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Sabaf's revenue growth is expected to slow, with the forecast 8.0% annualised growth rate until the end of 2024 being well below the historical 11% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.5% annually. So it's pretty clear that, while Sabaf's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also upgraded their revenue forecasts, although the latest estimates suggest that Sabaf will 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Sabaf going out as far as 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Sabaf that we have uncovered.

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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.