The SeSa S.p.A. (BIT:SES) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

Last week, you might have seen that SeSa S.p.A. (BIT:SES) released its quarterly result to the market. The early response was not positive, with shares down 9.5% to €102 in the past week. Results were roughly in line with estimates, with revenues of €725m and statutory earnings per share of €5.45. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for SeSa

After the latest results, the five analysts covering SeSa are now predicting revenues of €3.20b in 2024. If met, this would reflect an okay 2.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 8.3% to €5.74. Yet prior to the latest earnings, the analysts had been anticipated revenues of €3.26b and earnings per share (EPS) of €6.22 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at €167, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values SeSa at €208 per share, while the most bearish prices it at €116. 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 pretty clear that there is an expectation that SeSa's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.0% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. Compare this to the 8 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.2% per year. So it's pretty clear that, while SeSa's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for SeSa. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at €167, 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 SeSa analysts - going out to 2026, and you can see them free on our platform here.

It might also be worth considering whether SeSa's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.