MARR S.p.A. (BIT:MARR) Just Released Its Half-Yearly Results And Analysts Are Updating Their Estimates

Shareholders might have noticed that MARR S.p.A. (BIT:MARR) filed its half-yearly result this time last week. The early response was not positive, with shares down 7.4% to €9.57 in the past week. MARR reported in line with analyst predictions, delivering revenues of €995m and statutory earnings per share of €0.66, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from MARR's five analysts is for revenues of €2.14b in 2025. This would reflect a satisfactory 4.9% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 11% to €0.65. Yet prior to the latest earnings, the analysts had been anticipated revenues of €2.14b and earnings per share (EPS) of €0.74 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

View our latest analysis for MARR

The consensus price target held steady at €12.62, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic MARR analyst has a price target of €14.30 per share, while the most pessimistic values it at €11.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that MARR's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 13% 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) 4.8% per year. So it's pretty clear that, while MARR's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for MARR. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider 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 estimates - from multiple MARR analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for MARR (2 are potentially serious!) 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.