One Aeroporto Guglielmo Marconi di Bologna S.p.A. (BIT:ADB) Analyst Is Reducing Their Forecasts For This Year

Today is shaping up negative for Aeroporto Guglielmo Marconi di Bologna S.p.A. (BIT:ADB) shareholders, with the covering analyst delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the consensus from sole analyst covering Aeroporto Guglielmo Marconi di Bologna is for revenues of €62m in 2021, implying a perceptible 5.9% decline in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 28% to €0.27. Yet prior to the latest estimates, the analyst had been forecasting revenues of €79m and losses of €0.22 per share in 2021. So there's been quite a change-up of views after the recent consensus updates, with the analyst making a serious cut to their revenue forecasts while also expecting losses per share to increase.

Check out our latest analysis for Aeroporto Guglielmo Marconi di Bologna

The analyst lifted their price target 25% to €9.40, implicitly signalling that lower earnings per share are not expected to have a longer-term impact on the stock's value.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 5.9% by the end of 2021. This indicates a significant reduction from annual growth of 4.1% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.5% annually for the foreseeable future. It's pretty clear that Aeroporto Guglielmo Marconi di Bologna's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Aeroporto Guglielmo Marconi di Bologna. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Aeroporto Guglielmo Marconi di Bologna's revenues are expected to grow slower than the wider market. The rising price target is a puzzle, but still - with a serious cut to this year's outlook, we wouldn't be surprised if investors were a bit wary of Aeroporto Guglielmo Marconi di Bologna.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

When trading Aeroporto Guglielmo Marconi di Bologna or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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