Saipem SpA Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

As you might know, Saipem SpA (BIT:SPM) just kicked off its latest yearly results with some very strong numbers. The company beat forecasts, with revenue of €12b, some 4.3% above estimates, and statutory earnings per share (EPS) coming in at €0.09, 57% ahead of 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Saipem

Taking into account the latest results, the most recent consensus for Saipem from 14 analysts is for revenues of €12.8b in 2024. If met, it would imply a satisfactory 7.7% increase on its revenue over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of €12.0b and earnings per share (EPS) of €0.14 in 2024. What's really interesting is that while the consensus made a small lift in revenue estimates, it no longer provides an earnings per share estimate. This suggests that revenues are now the focus of the business after this latest result.

We'd also point out that thatthe analysts have made no major changes to their price target of €2.32. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Saipem, with the most bullish analyst valuing it at €3.00 and the most bearish at €1.65 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. The analysts are definitely expecting Saipem's growth to accelerate, with the forecast 7.7% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.9% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Saipem is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts upgraded their revenue estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at €2.32, with the latest estimates not enough to have an impact on their price targets.

We have estimates for Saipem from its 14 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 Saipem that we have uncovered.

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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.