Ascopiave S.p.A. Just Beat EPS By 56%: Here's What Analysts Think Will Happen Next

It's been a good week for Ascopiave S.p.A. (BIT:ASC) shareholders, because the company has just released its latest full-year results, and the shares gained 5.2% to €3.84. The results were mixed; although revenues of €164m fell 15% short of what the analysts had predicted, per-share (statutory) earnings of €0.27 beat expectations by 56%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ascopiave after the latest results.

Check out our latest analysis for Ascopiave

Taking into account the latest results, the most recent consensus for Ascopiave from three analysts is for revenues of €186.8m in 2021 which, if met, would be a meaningful 14% increase on its sales over the past 12 months. Statutory earnings per share are expected to plummet 30% to €0.19 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €200.1m and earnings per share (EPS) of €0.19 in 2021. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The consensus has reconfirmed its price target of €4.27, showing that the analysts don't expect weaker sales expectations next year to have a material impact on Ascopiave's market value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Ascopiave at €4.50 per share, while the most bearish prices it at €4.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Ascopiave is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ascopiave's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Ascopiave is forecast to grow faster in the future than it has in the past, with revenues expected to display 14% annualised growth until the end of 2021. If achieved, this would be a much better result than the 34% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 2.6% annually. Not only are Ascopiave's revenues expected to improve, it seems that the analysts are also expecting it to grow faster 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. With that said, earnings are more important to the long-term value of the business. The consensus price target held steady at €4.27, with the latest estimates not enough to have an impact on their price targets.

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 Ascopiave analysts - going out to 2025, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Ascopiave (2 don't sit too well with us!) that you need to be mindful of.

If you’re looking to trade Ascopiave, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade 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.