Industry Analysts Just Upgraded Their ACEA S.p.A. (BIT:ACE) Revenue Forecasts By 11%

ACEA S.p.A. (BIT:ACE) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

Following the upgrade, the consensus from three analysts covering ACEA is for revenues of €4.6b in 2023, implying a small 4.9% decline in sales compared to the last 12 months. Statutory earnings per share are expected to be €1.52, roughly flat on the last 12 months. Before this latest update, the analysts had been forecasting revenues of €4.2b and earnings per share (EPS) of €1.51 in 2023. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

View our latest analysis for ACEA

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ACEA's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 4.9% by the end of 2023. This indicates a significant reduction from annual growth of 10% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 0.6% annually for the foreseeable future. So it's pretty clear that ACEA's revenues are expected to shrink faster than the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Notably, analysts also upgraded their revenue estimates, with sales performing well although ACEA's revenue growth is expected to trail that of the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at ACEA.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple ACEA analysts - going out to 2025, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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