Banca Mediolanum S.p.A. (BIT:BMED) Just Released Its Interim Earnings: Here's What Analysts Think

Banca Mediolanum S.p.A. (BIT:BMED) shareholders are probably feeling a little disappointed, since its shares fell 7.8% to €10.04 in the week after its latest half-yearly results. It was an okay report, and revenues came in at €701m, approximately in line with analyst estimates leading up to the results announcement. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Banca Mediolanum

Following the latest results, Banca Mediolanum's six analysts are now forecasting revenues of €2.98b in 2024. This would be a major 47% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dip 2.9% to €1.19 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €2.88b and earnings per share (EPS) of €1.20 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of €12.28, implying that the uplift in revenue is not expected to greatly contribute to Banca Mediolanum's valuation in the near term. 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. There are some variant perceptions on Banca Mediolanum, with the most bullish analyst valuing it at €13.50 and the most bearish at €10.90 per share. 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. It's clear from the latest estimates that Banca Mediolanum's rate of growth is expected to accelerate meaningfully, with the forecast 117% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 9.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Banca Mediolanum to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at €12.28, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Banca Mediolanum going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Banca Mediolanum (1 can't be ignored!) that you need to take into consideration.

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.

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