Intercos S.p.A. (BIT:ICOS) Just Released Its Half-Yearly Earnings: Here's What Analysts Think

Last week, you might have seen that Intercos S.p.A. (BIT:ICOS) released its interim result to the market. The early response was not positive, with shares down 3.9% to €12.65 in the past week. Results were roughly in line with estimates, with revenues of €368m and statutory earnings per share of €0.29. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Intercos

Taking into account the latest results, the most recent consensus for Intercos from five analysts is for revenues of €777.3m in 2022 which, if met, would be a modest 6.9% increase on its sales over the past 12 months. Per-share earnings are expected to surge 79% to €0.52. Yet prior to the latest earnings, the analysts had been anticipated revenues of €773.1m and earnings per share (EPS) of €0.49 in 2022. So the consensus seems to have become somewhat more optimistic on Intercos' earnings potential following these results.

The consensus price target was unchanged at €15.72, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Intercos analyst has a price target of €17.70 per share, while the most pessimistic values it at €14.00. This is a very narrow spread of estimates, implying either that Intercos is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Intercos' rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 2.7% p.a. 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 9.6% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Intercos to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Intercos following these results. Happily, there were no major changes to revenue forecasts, with the business still 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Intercos going out to 2024, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Intercos 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.