Earnings Miss: Recordati Industria Chimica e Farmaceutica S.p.A. Missed EPS By 5.4% And Analysts Are Revising Their Forecasts

Last week, you might have seen that Recordati Industria Chimica e Farmaceutica S.p.A. (BIT:REC) released its half-yearly result to the market. The early response was not positive, with shares down 5.5% to €50.70 in the past week. It looks like the results were a bit of a negative overall. While revenues of €1.3b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.4% to hit €0.43 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the nine analysts covering Recordati Industria Chimica e Farmaceutica are now predicting revenues of €2.64b in 2025. If met, this would reflect a satisfactory 6.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 17% to €2.31. Yet prior to the latest earnings, the analysts had been anticipated revenues of €2.64b and earnings per share (EPS) of €2.32 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Recordati Industria Chimica e Farmaceutica

The analysts reconfirmed their price target of €58.97, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Recordati Industria Chimica e Farmaceutica, with the most bullish analyst valuing it at €69.00 and the most bearish at €50.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Recordati Industria Chimica e Farmaceutica shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Recordati Industria Chimica e Farmaceutica'shistorical trends, as the 14% annualised revenue growth to the end of 2025 is roughly in line with the 12% 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 5.3% per year. So although Recordati Industria Chimica e Farmaceutica is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share 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. The consensus price target held steady at €58.97, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Recordati Industria Chimica e Farmaceutica going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Recordati Industria Chimica e Farmaceutica .

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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.