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

The quarterly results for Infrastrutture Wireless Italiane S.p.A. (BIT:INW) were released last week, making it a good time to revisit its performance. It was an okay report, and revenues came in at €266m, approximately in line with analyst estimates leading up to the results announcement. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Taking into account the latest results, the current consensus from Infrastrutture Wireless Italiane's 17 analysts is for revenues of €1.08b in 2025. This would reflect a satisfactory 3.3% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 8.1% to €0.41. Before this earnings report, the analysts had been forecasting revenues of €1.08b and earnings per share (EPS) of €0.43 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for Infrastrutture Wireless Italiane

The consensus price target held steady at €11.82, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on Infrastrutture Wireless Italiane, with the most bullish analyst valuing it at €13.50 and the most bearish at €10.10 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Infrastrutture Wireless Italiane is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Infrastrutture Wireless Italiane's past performance and to peers in the same industry. We would highlight that Infrastrutture Wireless Italiane's revenue growth is expected to slow, with the forecast 4.4% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last five years. Compare this to the 7 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.7% per year. So it's pretty clear that, while Infrastrutture Wireless Italiane'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 Infrastrutture Wireless Italiane. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Infrastrutture Wireless Italiane (of which 1 is concerning!) you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.