iGrandiViaggi S.p.A. (BIT:IGV) Just Reported, And Analysts Assigned A €1.30 Price Target

It's been a good week for iGrandiViaggi S.p.A. (BIT:IGV) shareholders, because the company has just released its latest full-year results, and the shares gained 3.5% to €0.99. Revenues of €33m arrived in line with expectations, although statutory losses per share were €0.03, an impressive 24% smaller than what broker models predicted. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on iGrandiViaggi after the latest results.

View our latest analysis for iGrandiViaggi

Taking into account the latest results, the current consensus from iGrandiViaggi's single analyst is for revenues of €40.0m in 2022, which would reflect a meaningful 20% increase on its sales over the past 12 months. Losses are supposed to decline, shrinking 14% from last year to €0.027. Before this latest report, the consensus had been expecting revenues of €42.6m and €0.036 per share in losses. While the revenue estimates fell, sentiment seems to have improved, with the analyst making a considerable decrease in losses per share in particular.

The analyst has cut their price target 13% to €1.30per share, suggesting that the declining revenue was a more crucial indicator than the forecast reduction in losses.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that iGrandiViaggi is forecast to grow faster in the future than it has in the past, with revenues expected to display 20% annualised growth until the end of 2022. If achieved, this would be a much better result than the 14% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 15% annually. Not only are iGrandiViaggi's revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analyst made no changes to their forecasts for a loss next year. They also downgraded their revenue estimates, although industry data suggests that iGrandiViaggi's revenues are expected to grow faster than the wider industry. Yet - earnings are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of iGrandiViaggi's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on iGrandiViaggi. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with iGrandiViaggi (including 1 which doesn't sit too well with us) .

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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.