Earnings Update: Buzzi S.p.A. (BIT:BZU) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts

It's been a sad week for Buzzi S.p.A. (BIT:BZU), who've watched their investment drop 12% to €45.02 in the week since the company reported its full-year result. Buzzi reported €4.3b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €5.14 beat expectations, being 3.2% higher than what the analysts expected. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the eleven analysts covering Buzzi are now predicting revenues of €4.58b in 2025. If met, this would reflect an okay 6.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 4.0% to €4.99 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €4.66b and earnings per share (EPS) of €5.20 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 minor downgrade to their earnings per share forecasts.

See our latest analysis for Buzzi

It might be a surprise to learn that the consensus price target was broadly unchanged at €47.93, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Buzzi analyst has a price target of €57.00 per share, while the most pessimistic values it at €26.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Buzzi'shistorical trends, as the 6.3% annualised revenue growth to the end of 2025 is roughly in line with the 7.6% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.9% per year. So it's pretty clear that Buzzi is forecast to grow substantially 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €47.93, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Buzzi. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Buzzi analysts - going out to 2027, 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 Buzzi 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.