Banca Generali S.p.A. (BIT:BGN) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

Shareholders might have noticed that Banca Generali S.p.A. (BIT:BGN) filed its full-year result this time last week. The early response was not positive, with shares down 2.6% to €34.56 in the past week. Results were roughly in line with estimates, with revenues of €787m and statutory earnings per share of €2.79. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Banca Generali

Taking into account the latest results, the current consensus from Banca Generali's nine analysts is for revenues of €815.8m in 2024. This would reflect a modest 3.7% increase on its revenue over the past 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €807.4m and earnings per share (EPS) of €2.98 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 €35.11, 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 €38.50 and the most bearish at €31.80 per share. 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.

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. It's pretty clear that there is an expectation that Banca Generali's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.7% growth on an annualised basis. This is compared to a historical growth rate of 7.1% 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) 1.3% per year. So it's pretty clear that, while Banca Generali's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €35.11, with the latest estimates not enough to have an impact on their price targets.

At least one of Banca Generali's nine analysts has provided estimates out to 2026, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Banca Generali you should know about.

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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.