The ERG S.p.A. (BIT:ERG) First-Quarter Results Are Out And Analysts Have Published New Forecasts

The quarterly results for ERG S.p.A. (BIT:ERG) were released last week, making it a good time to revisit its performance. It was a credible result overall, with revenues of €210m and statutory earnings per share of €1.28 both in line with analyst estimates, showing that ERG is executing in line with expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, ERG's seven analysts are now forecasting revenues of €870.0m in 2025. This would be a sizeable 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 35% to €1.47. Yet prior to the latest earnings, the analysts had been anticipated revenues of €834.6m and earnings per share (EPS) of €1.32 in 2025. So it seems there's been a definite increase in optimism about ERG's future following the latest results, with a nice increase in the earnings per share forecasts in particular.

Check out our latest analysis for ERG

Despite these upgrades,the analysts have not made any major changes to their price target of €21.84, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. The most optimistic ERG analyst has a price target of €29.40 per share, while the most pessimistic values it at €19.50. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. For example, we noticed that ERG's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 28% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 5.5% a year 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 7.2% annually. So it looks like ERG is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards ERG following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at €21.84, 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 ERG analysts - going out to 2027, and you can see them free on our platform here.

You can also view our analysis of ERG's balance sheet, and whether we think ERG is carrying too much debt, for free on our platform here.

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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.