Saipem SpA Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Saipem SpA (BIT:SPM) shareholders are probably feeling a little disappointed, since its shares fell 3.9% to €2.31 in the week after its latest half-year results. Statutory earnings per share fell badly short of expectations, coming in at €0.032, some 42% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at €3.7b. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following last week's earnings report, Saipem's 15 analysts are forecasting 2025 revenues to be €15.3b, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €15.2b and earnings per share (EPS) of €0.21 in 2025. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

See our latest analysis for Saipem

There's been no real change to the consensus price target of €3.13, with Saipem seemingly executing in line with expectations. 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. The most optimistic Saipem analyst has a price target of €3.54 per share, while the most pessimistic values it at €2.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.1% by the end of 2025. This indicates a significant reduction from annual growth of 18% 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 4.6% annually for the foreseeable future. It's pretty clear that Saipem's revenues are expected to perform substantially worse than 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 Saipem's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €3.13, with the latest estimates not enough to have an impact on their price targets.

At least one of Saipem's 15 analysts has provided estimates out to 2027, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Saipem you should be aware of.

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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.