One Analyst's Revenue Estimates For TXT e-solutions S.p.A. (BIT:TXT) Are Surging Higher

TXT e-solutions S.p.A. (BIT:TXT) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The analyst has sharply increased their revenue numbers, with a view that TXT e-solutions will make substantially more sales than they'd previously expected.

After the upgrade, the solitary analyst covering TXT e-solutions is now predicting revenues of €152m in 2022. If met, this would reflect a huge 44% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to shrink 3.7% to €0.71 in the same period. Before this latest update, the analyst had been forecasting revenues of €120m and earnings per share (EPS) of €0.69 in 2022. The forecasts seem more optimistic now, with a great increase in revenue and a slight bump in earnings per share estimates.

View our latest analysis for TXT e-solutions

With these upgrades, we're not surprised to see that the analyst has lifted their price target 15% to €15.50 per share.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that TXT e-solutions' rate of growth is expected to accelerate meaningfully, with the forecast 44% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 22% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 20% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect TXT e-solutions to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at TXT e-solutions.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for TXT e-solutions going out as far as 2024, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.