Stock Analysis

DiaSorin S.p.A. (BIT:DIA) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

Investors in DiaSorin S.p.A. (BIT:DIA) had a good week, as its shares rose 9.0% to close at €109 following the release of its quarterly results. It was an okay result overall, with revenues coming in at €287m, roughly what the analysts had been expecting. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for DiaSorin

earnings-and-revenue-growth
BIT:DIA Earnings and Revenue Growth November 8th 2024

Taking into account the latest results, the consensus forecast from DiaSorin's 13 analysts is for revenues of €1.28b in 2025. This reflects a notable 8.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 8.6% to €3.85. In the lead-up to this report, the analysts had been modelling revenues of €1.28b and earnings per share (EPS) of €3.88 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of €107, suggesting that the company has met expectations in its recent result. 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 DiaSorin analyst has a price target of €126 per share, while the most pessimistic values it at €82.00. 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.

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 DiaSorin's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.1% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this to the 5 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.4% per year. So it's pretty clear that, while DiaSorin's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

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The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

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. We have forecasts for DiaSorin going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for DiaSorin you should know about.

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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.

About BIT:DIA

DiaSorin

Engages in research and development, manufacture, and distribution of immunodiagnostics and molecular diagnostics testing kits in Europe, North America, and internationally.

Undervalued established dividend payer.

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