Analysts Are Updating Their Telecom Italia S.p.A. (BIT:TIT) Estimates After Its Yearly Results

Shareholders in Telecom Italia S.p.A. (BIT:TIT) had a terrible week, as shares crashed 22% to €0.22 in the week since its latest yearly results. It was an okay report, and revenues came in at €17b, approximately in line with analyst estimates leading up to the results announcement. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Telecom Italia

Following last week's earnings report, Telecom Italia's eleven analysts are forecasting 2024 revenues to be €16.6b, approximately in line with the last 12 months. Before this latest report, the consensus had been expecting revenues of €16.5b and €0.019 per share in losses. 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 €0.35, with Telecom Italia seemingly executing in line with expectations. 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 Telecom Italia, with the most bullish analyst valuing it at €0.45 and the most bearish at €0.25 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Telecom Italia shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2024. Historically, Telecom Italia's top line has shrunk approximately 3.6% annually over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.0% per year. So it's pretty clear that, although revenues are improving, Telecom Italia is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Telecom Italia's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €0.35, with the latest estimates not enough to have an impact on their price targets.

We have estimates for Telecom Italia from its eleven 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 Telecom Italia (1 doesn't sit too well with us) 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.