Earnings Update: Infrastrutture Wireless Italiane S.p.A. (BIT:INW) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

Shareholders might have noticed that Infrastrutture Wireless Italiane S.p.A. (BIT:INW) filed its third-quarter result this time last week. The early response was not positive, with shares down 6.0% to €9.76 in the past week. It was an okay result overall, with revenues coming in at €260m, 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.

View our latest analysis for Infrastrutture Wireless Italiane

Taking into account the latest results, the most recent consensus for Infrastrutture Wireless Italiane from 18 analysts is for revenues of €1.11b in 2025. If met, it would imply a notable 9.1% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 19% to €0.45. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.11b and earnings per share (EPS) of €0.45 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €12.38. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Infrastrutture Wireless Italiane at €13.50 per share, while the most bearish prices it at €10.50. This is a very narrow spread of estimates, implying either that Infrastrutture Wireless Italiane is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Infrastrutture Wireless Italiane's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.2% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.4% per year. Even after the forecast slowdown in growth, it seems obvious that Infrastrutture Wireless Italiane is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Infrastrutture Wireless Italiane. Long-term earnings power is much more important than next year's profits. We have forecasts for Infrastrutture Wireless Italiane going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Infrastrutture Wireless Italiane (at least 1 which shouldn't be ignored) , and understanding them should be part of your investment process.

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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.