Some BFF Bank S.p.A. (BIT:BFF) Analysts Just Made A Major Cut To Next Year's Estimates

The analysts covering BFF Bank S.p.A. (BIT:BFF) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the downgrade, the consensus from five analysts covering BFF Bank is for revenues of €412m in 2025, implying an uneasy 15% decline in sales compared to the last 12 months. Statutory earnings per share are supposed to descend 18% to €0.94 in the same period. Prior to this update, the analysts had been forecasting revenues of €478m and earnings per share (EPS) of €1.12 in 2025. Indeed, we can see that the analysts are a lot more bearish about BFF Bank's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for BFF Bank

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 15% by the end of 2025. This indicates a significant reduction from annual growth of 19% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 0.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - BFF Bank is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on BFF Bank, and a few readers might choose to steer clear of the stock.

Worse, BFF Bank is labouring under a substantial debt burden, which - if today's forecasts prove accurate - the forecast downgrade could potentially exacerbate. To see more of our financial analysis, you can click through to our free platform to learn more about its balance sheet and specific concerns we've identified.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.