Analysts Have Lowered Expectations For Seco S.p.A. (BIT:IOT) After Its Latest Results

It's been a sad week for Seco S.p.A. (BIT:IOT), who've watched their investment drop 12% to €2.52 in the week since the company reported its first-quarter result. Results were overall in line with expectations, with the company breaking even at the statutory earnings per share (EPS) level on €49m in revenue. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the consensus forecast from Seco's five analysts is for revenues of €214.9m in 2026. This reflects a reasonable 7.6% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €227.6m and earnings per share (EPS) of €0.13 in 2026. So we can see that while the consensus made a minor downgrade to revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenue after the latest result.

Check out our latest analysis for Seco

We'd also point out that thatthe analysts have made no major changes to their price target of €3.44. 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 Seco, with the most bullish analyst valuing it at €3.70 and the most bearish at €3.20 per share. 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.

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 can infer from the latest estimates that forecasts expect a continuation of Seco'shistorical trends, as the 10% annualised revenue growth to the end of 2026 is roughly in line with the 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% annually. It's clear that while Seco's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their revenue estimates for next year. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at €3.44, with the latest estimates not enough to have an impact on their price targets.

We have estimates for Seco from its five analysts out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - Seco has 1 warning sign we think 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.