Earnings Beat: Recordati Industria Chimica e Farmaceutica S.p.A. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

As you might know, Recordati Industria Chimica e Farmaceutica S.p.A. (BIT:REC) recently reported its quarterly numbers. The result was positive overall - although revenues of €557m were in line with what the analysts predicted, Recordati Industria Chimica e Farmaceutica surprised by delivering a statutory profit of €0.54 per share, modestly greater than 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Recordati Industria Chimica e Farmaceutica

Taking into account the latest results, the consensus forecast from Recordati Industria Chimica e Farmaceutica's nine analysts is for revenues of €2.56b in 2025. This reflects a notable 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 24% to €2.57. In the lead-up to this report, the analysts had been modelling revenues of €2.56b and earnings per share (EPS) of €2.57 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €55.24. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Recordati Industria Chimica e Farmaceutica at €63.00 per share, while the most bearish prices it at €48.00. 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.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 10% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.4% annually. So it's pretty clear that Recordati Industria Chimica e Farmaceutica is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

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 estimates - from multiple Recordati Industria Chimica e Farmaceutica analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Recordati Industria Chimica e Farmaceutica is showing 1 warning sign in our investment analysis , you should know about...

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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.