€3.05: That's What Analysts Think Ascopiave S.p.A. (BIT:ASC) Is Worth After Its Latest Results

It's been a good week for Ascopiave S.p.A. (BIT:ASC) shareholders, because the company has just released its latest half-yearly results, and the shares gained 2.0% to €2.50. Results overall were respectable, with statutory earnings of €0.17 per share roughly in line with what the analysts had forecast. Revenues of €99m came in 2.7% ahead of analyst predictions. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 Ascopiave

Taking into account the latest results, the dual analysts covering Ascopiave provided consensus estimates of €189.0m revenue in 2024, which would reflect a perceptible 3.6% decline over the past 12 months. Statutory earnings per share are forecast to crater 38% to €0.12 in the same period. Before this earnings report, the analysts had been forecasting revenues of €184.0m and earnings per share (EPS) of €0.15 in 2024. So it's pretty clear the analysts have mixed opinions on Ascopiave after the latest results; even though they upped their revenue numbers, it came at the cost of a real cut to per-share earnings expectations.

The analysts also cut Ascopiave's price target 7.6% to €3.05, implying that lower forecast earnings are expected to have a more negative impact than can be offset by the increase in revenue.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 7.0% annualised decline to the end of 2024. That is a notable change from historical growth of 7.6% 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 2.6% annually for the foreseeable future. It's pretty clear that Ascopiave's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Ascopiave's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Ascopiave (at least 2 which are significant) , and understanding these should be part of your investment process.

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

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.

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