A2A S.p.A. (BIT:A2A) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

A2A S.p.A. (BIT:A2A) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a negative result overall, with revenues coming in 15% less than what the analysts expected, at €13b. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

After the latest results, the consensus from A2A's four analysts is for revenues of €12.2b in 2025, which would reflect a perceptible 4.9% decline in revenue compared to the last year of performance. Statutory earnings per share are expected to nosedive 20% to €0.22 in the same period. Before this earnings report, the analysts had been forecasting revenues of €14.4b and earnings per share (EPS) of €0.22 in 2025. Indeed we can see that the consensus opinion has undergone some fundamental changes following the latest results, with a substantial drop in revenues and some minor tweaks to earnings numbers.

View our latest analysis for A2A

The average price target was steady at €2.46even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values A2A at €2.70 per share, while the most bearish prices it at €2.40. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 4.9% annualised decline to the end of 2025. That is a notable change from historical growth of 17% 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 3.4% annually for the foreseeable future. It's pretty clear that A2A's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, long term profitability is more important for the value creation process. The consensus price target held steady at €2.46, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for A2A going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for A2A (1 doesn't sit too well with us!) that we have uncovered.

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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.