Analysts Are Updating Their Amplifon S.p.A. (BIT:AMP) Estimates After Its Half-Year Results

Last week, you might have seen that Amplifon S.p.A. (BIT:AMP) released its interim result to the market. The early response was not positive, with shares down 2.9% to €28.46 in the past week. Revenues of €1.2b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at €0.23, missing estimates by 3.5%. 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.

See our latest analysis for Amplifon

Taking into account the latest results, the most recent consensus for Amplifon from twelve analysts is for revenues of €2.43b in 2024. If met, it would imply an okay 4.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 10% to €0.79. In the lead-up to this report, the analysts had been modelling revenues of €2.45b and earnings per share (EPS) of €0.85 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.

The consensus price target held steady at €34.62, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic Amplifon analyst has a price target of €39.00 per share, while the most pessimistic values it at €30.00. This is a very narrow spread of estimates, implying either that Amplifon is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Amplifon'shistorical trends, as the 9.3% annualised revenue growth to the end of 2024 is roughly in line with the 9.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.3% annually. So it's pretty clear that Amplifon is forecast to grow substantially faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Amplifon going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Amplifon has 1 warning sign we think you should be aware of.

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