Technoprobe S.p.A. (BIT:TPRO) Just Reported Earnings, And Analysts Cut Their Target Price

It's been a sad week for Technoprobe S.p.A. (BIT:TPRO), who've watched their investment drop 11% to €7.16 in the week since the company reported its interim result. Results were roughly in line with estimates, with revenues of €241m and statutory earnings per share of €0.16. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Technoprobe

After the latest results, the five analysts covering Technoprobe are now predicting revenues of €557.1m in 2024. If met, this would reflect a huge 23% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decline 18% to €0.12 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €570.3m and earnings per share (EPS) of €0.16 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 10% to €8.02. 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 Technoprobe, with the most bullish analyst valuing it at €10.00 and the most bearish at €6.80 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that Technoprobe is forecast to grow faster in the future than it has in the past, with revenues expected to display 51% annualised growth until the end of 2024. If achieved, this would be a much better result than the 8.3% annual decline over the past year. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 15% annually. So it looks like Technoprobe 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. They also downgraded Technoprobe's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Technoprobe's future valuation.

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 Technoprobe going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Technoprobe that you should be aware 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.