Infrastrutture Wireless Italiane S.p.A. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

The first-quarter results for Infrastrutture Wireless Italiane S.p.A. (BIT:INW) were released last week, making it a good time to revisit its performance. It looks like a credible result overall - although revenues of €255m were what the analysts expected, Infrastrutture Wireless Italiane surprised by delivering a (statutory) profit of €0.19 per share, an impressive 96% above what was forecast. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Infrastrutture Wireless Italiane

Taking into account the latest results, the current consensus from Infrastrutture Wireless Italiane's 16 analysts is for revenues of €1.05b in 2024. This would reflect an okay 6.7% increase on its revenue over the past 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.05b and earnings per share (EPS) of €0.41 in 2024. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

There's been no real change to the consensus price target of €12.81, with Infrastrutture Wireless Italiane seemingly executing in line with expectations. 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 Infrastrutture Wireless Italiane analyst has a price target of €14.50 per share, while the most pessimistic values it at €10.90. 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.

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 9.0% annualised growth rate until the end of 2024 being well below the historical 19% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.1% per year. So it's pretty clear that, while Infrastrutture Wireless Italiane's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €12.81, with the latest estimates not enough to have an impact on their price targets.

We have estimates for Infrastrutture Wireless Italiane from its 16 analysts out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Infrastrutture Wireless Italiane (1 shouldn't be ignored) 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.