Earnings Miss: Amplifon S.p.A. Missed EPS By 13% And Analysts Are Revising Their Forecasts

Amplifon S.p.A. (BIT:AMP) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. Amplifon missed earnings this time around, with €588m revenue coming in 2.0% below what the analysts had modelled. Statutory earnings per share (EPS) of €0.15 also fell short of expectations by 13%. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Amplifon's 15 analysts is for revenues of €2.53b in 2025. This would reflect a satisfactory 4.5% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 20% to €0.77. Before this earnings report, the analysts had been forecasting revenues of €2.57b and earnings per share (EPS) of €0.80 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Check out our latest analysis for Amplifon

The consensus price target held steady at €26.58, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Amplifon, with the most bullish analyst valuing it at €31.50 and the most bearish at €21.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Amplifon's past performance and to peers in the same industry. We would highlight that Amplifon's revenue growth is expected to slow, with the forecast 6.1% annualised growth rate until the end of 2025 being well below the historical 9.4% p.a. growth over the last five years. Compare this to the 5 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.9% per year. Factoring in the forecast slowdown in growth, it looks like Amplifon is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Amplifon. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at €26.58, 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 2027, 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.