Stock Analysis

The Wiit S.p.A. (BIT:WIIT) Yearly Results Are Out And Analysts Have Published New Forecasts

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Wiit S.p.A. (BIT:WIIT) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was an okay result overall, with revenues coming in at €119m, roughly what the analysts had been expecting. 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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BIT:WIIT Earnings and Revenue Growth March 19th 2023

Taking into account the latest results, the consensus forecast from Wiit's five analysts is for revenues of €135.8m in 2023, which would reflect a decent 14% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to bounce 76% to €0.48. In the lead-up to this report, the analysts had been modelling revenues of €133.1m and earnings per share (EPS) of €0.52 in 2023. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a decent to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.

The consensus price target was unchanged at €26.90, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Wiit analyst has a price target of €30.00 per share, while the most pessimistic values it at €23.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. We would highlight that Wiit's revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2023 being well below the historical 36% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.9% annually. So it's pretty clear that, while Wiit's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Wiit. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. The consensus price target held steady at €26.90, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Wiit analysts - going out to 2025, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Wiit you should know about.

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