Analysts Have Been Trimming Their Aeroporto Guglielmo Marconi di Bologna S.p.A. (BIT:ADB) Price Target After Its Latest Report

Investors in Aeroporto Guglielmo Marconi di Bologna S.p.A. (BIT:ADB) had a good week, as its shares rose 6.4% to close at €7.60 following the release of its quarterly results. The analyst 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've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

See our latest analysis for Aeroporto Guglielmo Marconi di Bologna

Taking into account the latest results, Aeroporto Guglielmo Marconi di Bologna's one analyst currently expect revenues in 2023 to be €122.9m, approximately in line with the last 12 months. Statutory earnings per share are expected to dive 52% to €0.44 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of €122.2m and earnings per share (EPS) of €0.45 in 2023. The analyst 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.

It might be a surprise to learn that the consensus price target fell 7.1% to €7.80, with the analyst clearly linking lower forecast earnings to the performance of the stock price.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. From these estimates it looks as though the analyst expects the years of declining sales to come to an end, given the flat revenue forecast out to 2023. That would be a definite improvement, given that the past five years have seen sales shrink 8.9% annually. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.8% per year. So it's pretty clear that, although revenues are improving, Aeroporto Guglielmo Marconi di Bologna is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Aeroporto Guglielmo Marconi di Bologna's revenues are expected to perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Aeroporto Guglielmo Marconi di Bologna. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

It is also worth noting that we have found 1 warning sign for Aeroporto Guglielmo Marconi di Bologna that you need to take into consideration.

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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.