GVS S.p.A. (BIT:GVS) Just Reported Interim Earnings: Have Analysts Changed Their Mind On The Stock?

It's been a good week for GVS S.p.A. (BIT:GVS) shareholders, because the company has just released its latest half-yearly results, and the shares gained 2.4% to €4.88. It was a credible result overall, with revenues of €216m and statutory earnings per share of €0.19 both in line with analyst estimates, showing that GVS is executing in line with expectations. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the four analysts covering GVS are now predicting revenues of €447.2m in 2025. If met, this would reflect a reasonable 4.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 38% to €0.11. Before this earnings report, the analysts had been forecasting revenues of €452.6m and earnings per share (EPS) of €0.27 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

Check out our latest analysis for GVS

It might be a surprise to learn that the consensus price target was broadly unchanged at €6.35, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 GVS at €7.50 per share, while the most bearish prices it at €5.80. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting GVS' growth to accelerate, with the forecast 8.6% annualised growth to the end of 2025 ranking favourably alongside historical growth of 6.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that GVS is expected to grow much 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. The consensus price target held steady at €6.35, with the latest estimates not enough to have an impact on their price targets.

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 GVS going out to 2027, and you can see them free on our platform here..

Even so, be aware that GVS is showing 3 warning signs in our investment analysis , and 1 of those is potentially serious...

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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.