Amplifon S.p.A. (BIT:AMP) Just Released Its First-Quarter Earnings: Here's What Analysts Think

Investors in Amplifon S.p.A. (BIT:AMP) had a good week, as its shares rose 6.1% to close at €33.36 following the release of its first-quarter results. It was a credible result overall, with revenues of €573m and statutory earnings per share of €0.69 both in line with analyst estimates, showing that Amplifon is executing 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Amplifon after the latest results.

See our latest analysis for Amplifon

Following the latest results, Amplifon's twelve analysts are now forecasting revenues of €2.47b in 2024. This would be a modest 7.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 19% to €0.84. Before this earnings report, the analysts had been forecasting revenues of €2.46b and earnings per share (EPS) of €0.90 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at €35.26, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Amplifon, with the most bullish analyst valuing it at €42.00 and the most bearish at €30.80 per share. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Amplifon'shistorical trends, as the 10% annualised revenue growth to the end of 2024 is roughly in line with the 9.4% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.7% per year. So although Amplifon is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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 €35.26, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Amplifon analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Amplifon that 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.