Analysts Have Made A Financial Statement On Wiit S.p.A.'s (BIT:WIIT) Half-Year Report

Shareholders of Wiit S.p.A. (BIT:WIIT) will be pleased this week, given that the stock price is up 17% to €18.40 following its latest interim results. It was a workmanlike result, with revenues of €85m coming in 2.2% ahead of expectations, and statutory earnings per share of €0.37, in line with analyst appraisals. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 five analysts covering Wiit are now predicting revenues of €172.8m in 2025. If met, this would reflect a reasonable 2.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 44% to €0.55. Yet prior to the latest earnings, the analysts had been anticipated revenues of €171.7m and earnings per share (EPS) of €0.52 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for Wiit

There's been no major changes to the consensus price target of €24.06, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. Currently, the most bullish analyst values Wiit at €26.20 per share, while the most bearish prices it at €22.00. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wiit's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Wiit's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.1% growth on an annualised basis. This is compared to a historical growth rate of 24% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that Wiit is also expected to grow slower than other industry participants.

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 Wiit following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Wiit analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Wiit 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.