Analysts Are Updating Their Cairo Communication S.p.A. (BIT:CAI) Estimates After Its Full-Year Results

Shareholders of Cairo Communication S.p.A. (BIT:CAI) will be pleased this week, given that the stock price is up 16% to €2.10 following its latest full-year results. It was a pretty good result, with revenues of €1.1b, and Cairo Communication came in a solid 18% ahead of expectations. The analyst 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. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

See our latest analysis for Cairo Communication

Following last week's earnings report, Cairo Communication's sole analyst are forecasting 2022 revenues to be €1.11b, approximately in line with the last 12 months. Statutory earnings per share are expected to plunge 29% to €0.27 in the same period. In the lead-up to this report, the analyst had been modelling revenues of €1.09b and earnings per share (EPS) of €0.28 in 2022. So it's pretty clear consensus is mixed on Cairo Communication after the latest results; whilethe analyst lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

The consensus price target was unchanged at €2.70, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Cairo Communication's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 0.1% growth on an annualised basis. This is compared to a historical growth rate of 2.2% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.6% 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 Cairo Communication.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. The consensus price target held steady at €2.70, with the latest estimates not enough to have an impact on their price target.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Cairo Communication going out as far as 2023, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Cairo Communication (including 1 which can't be ignored) .

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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.