Reply S.p.A. (BIT:REY) Interim Results: Here's What Analysts Are Forecasting For This Year

It's been a good week for Reply S.p.A. (BIT:REY) shareholders, because the company has just released its latest half-year results, and the shares gained 7.7% to €116. Reply reported in line with analyst predictions, delivering revenues of €1.3b and statutory earnings per share of €6.73, suggesting the business is executing well and in line with its plan. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from Reply's eleven analysts is for revenues of €2.71b in 2026. This would reflect a credible 6.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 6.7% to €7.53. Before this earnings report, the analysts had been forecasting revenues of €2.65b and earnings per share (EPS) of €7.38 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

View our latest analysis for Reply

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of €153, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. The most optimistic Reply analyst has a price target of €195 per share, while the most pessimistic values it at €121. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Reply's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 11% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Reply is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Reply following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at €153, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Reply. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Reply going out to 2028, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.