EL.En. S.p.A. Just Recorded A 12% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, EL.En. S.p.A. (BIT:ELN) just kicked off its latest annual results with some very strong numbers. EL.En beat earnings, with revenues hitting €408m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 12%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for EL.En

Following the latest results, EL.En's twin analysts are now forecasting revenues of €457.5m in 2021. This would be a solid 12% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to soar 23% to €1.40. In the lead-up to this report, the analysts had been modelling revenues of €420.9m and earnings per share (EPS) of €1.35 in 2021. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 21% to €40.00per share.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the EL.En's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of EL.En'shistorical trends, as the 12% annualised revenue growth to the end of 2021 is roughly in line with the 12% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.4% annually. So although EL.En is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around EL.En's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for EL.En going out as far as 2022, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with EL.En .

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