Franchi Umberto Marmi S.p.A. Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders of Franchi Umberto Marmi S.p.A. (BIT:FUM) will be pleased this week, given that the stock price is up 12% to €9.50 following its latest full-year results. Sales of €65m surpassed estimates by 3.0%, although statutory earnings per share missed badly, coming in 37% below expectations at €0.32 per share. 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.

See our latest analysis for Franchi Umberto Marmi

Taking into account the latest results, the consensus forecast from Franchi Umberto Marmi's three analysts is for revenues of €72.1m in 2022, which would reflect a meaningful 10% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 73% to €0.55. Yet prior to the latest earnings, the analysts had been anticipated revenues of €72.7m and earnings per share (EPS) of €0.58 in 2022. 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.

The consensus price target held steady at €12.43, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Franchi Umberto Marmi at €13.00 per share, while the most bearish prices it at €12.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Franchi Umberto Marmi is forecast to grow faster in the future than it has in the past, with revenues expected to display 10% annualised growth until the end of 2022. If achieved, this would be a much better result than the 1.5% annual decline over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.6% annually. So it looks like Franchi Umberto Marmi is expected to grow faster than its competitors, at least for a while.

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 sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at €12.43, with the latest estimates not enough to have an impact on their price targets.

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 Franchi Umberto Marmi going out to 2024, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Franchi Umberto Marmi , and understanding this should be part of your investment process.

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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.