Orsero S.p.A. Beat Revenue Forecasts By 8.6%: Here's What Analysts Are Forecasting Next

It's been a pretty great week for Orsero S.p.A. (BIT:ORS) shareholders, with its shares surging 12% to €18.08 in the week since its latest first-quarter results. It was a workmanlike result, with revenues of €380m coming in 8.6% ahead of expectations, and statutory earnings per share of €1.57, in line with analyst appraisals. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, Orsero's three analysts currently expect revenues in 2025 to be €1.66b, approximately in line with the last 12 months. Statutory earnings per share are expected to fall 14% to €1.60 in the same period. Before this earnings report, the analysts had been forecasting revenues of €1.61b and earnings per share (EPS) of €1.52 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Check out our latest analysis for Orsero

It will come as no surprise to learn that the analysts have increased their price target for Orsero 7.9% to €24.67on the back of these upgrades. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Orsero analyst has a price target of €26.00 per share, while the most pessimistic values it at €24.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.4% by the end of 2025. This indicates a significant reduction from annual growth of 11% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.4% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Orsero is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Orsero's earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Orsero. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Orsero analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Orsero that you need to be mindful 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.