Amplifon S.p.A. (BIT:AMP) Just Reported, And Analysts Assigned A €20.93 Price Target

Shareholders in Amplifon S.p.A. (BIT:AMP) had a terrible week, as shares crashed 27% to €14.84 in the week since its latest half-yearly results. Revenues came in 2.4% below expectations, at €1.2b. Statutory earnings per share were relatively better off, with a per-share profit of €0.64 being roughly in line with analyst estimates. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following last week's earnings report, Amplifon's 15 analysts are forecasting 2025 revenues to be €2.43b, approximately in line with the last 12 months. Statutory earnings per share are expected to dip 4.3% to €0.53 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €2.52b and earnings per share (EPS) of €0.77 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

See our latest analysis for Amplifon

It'll come as no surprise then, to learn that the analysts have cut their price target 19% to €20.93. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Amplifon at €25.00 per share, while the most bearish prices it at €15.95. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 Amplifon's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.7% growth on an annualised basis. This is compared to a historical growth rate of 9.4% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Amplifon.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Amplifon. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Amplifon going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Amplifon (1 is a bit unpleasant) 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.