Neodecortech S.p.A. (BIT:NDT) Just Reported Full-Year Earnings: Have Analysts Changed Their Mind On The Stock?

Last week saw the newest annual earnings release from Neodecortech S.p.A. (BIT:NDT), an important milestone in the company's journey to build a stronger business. It was an okay report, and revenues came in at €169m, approximately in line with analyst estimates leading up to the results announcement. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Neodecortech

Taking into account the latest results, the current consensus from Neodecortech's two analysts is for revenues of €172.5m in 2024. This would reflect a modest 2.2% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 66% to €0.34. In the lead-up to this report, the analysts had been modelling revenues of €180.6m and earnings per share (EPS) of €0.39 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

The analysts made no major changes to their price target of €4.50, suggesting the downgrades are not expected to have a long-term impact on Neodecortech's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Neodecortech's revenue growth is expected to slow, with the forecast 2.2% annualised growth rate until the end of 2024 being well below the historical 10% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.2% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Neodecortech.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Neodecortech. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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.

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 Neodecortech going out as far as 2025, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Neodecortech that you need to be mindful 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.