Banca Generali S.p.A. Beat Revenue Forecasts By 11%: Here's What Analysts Are Forecasting Next

Investors in Banca Generali S.p.A. (BIT:BGN) had a good week, as its shares rose 7.5% to close at €39.96 following the release of its first-quarter results. Banca Generali beat revenue forecasts by a solid 11% to hit €257m. Statutory earnings per share came in at €2.79, in line with expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Banca Generali

Taking into account the latest results, the eight analysts covering Banca Generali provided consensus estimates of €847.4m revenue in 2024, which would reflect a small 2.2% decline over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of €831.8m and earnings per share (EPS) of €2.99 in 2024. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

There's been no real change to the consensus price target of €37.60, with Banca Generali seemingly executing in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Banca Generali, with the most bullish analyst valuing it at €43.00 and the most bearish at €33.80 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Banca Generali is an easy business to forecast or the the analysts are all using similar assumptions.

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 revenue is expected to slow, with a forecast annualised decline of 2.9% by the end of 2024. This indicates a significant reduction from annual growth of 7.2% 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 2.5% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Banca Generali is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Banca Generali's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €37.60, with the latest estimates not enough to have an impact on their price targets.

We have estimates for Banca Generali from its eight analysts out to 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 Banca Generali (1 doesn't sit too well with us!) that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.