Earnings Update: Italgas S.p.A. (BIT:IG) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts

The annual results for Italgas S.p.A. (BIT:IG) were released last week, making it a good time to revisit its performance. The results were positive, with revenue coming in at €1.8b, beating analyst expectations by 4.6%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Italgas

Taking into account the latest results, the most recent consensus for Italgas from ten analysts is for revenues of €1.87b in 2024. If met, it would imply a credible 2.8% increase on its revenue over the past 12 months. Before this earnings report, the analysts had been forecasting revenues of €1.83b and earnings per share (EPS) of €0.58 in 2024. The thing that stands out most is that, while there's been a small increase to revenue estimates, the consensus no longer provides an EPS estimate. This impliesthat revenue is more important following the latest results.

We'd also point out that thatthe analysts have made no major changes to their price target of €5.96. 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. The most optimistic Italgas analyst has a price target of €6.90 per share, while the most pessimistic values it at €5.20. This is a very narrow spread of estimates, implying either that Italgas is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Italgas' revenue growth is expected to slow, with the forecast 2.8% annualised growth rate until the end of 2024 being well below the historical 6.7% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.4% annually. Factoring in the forecast slowdown in growth, it looks like Italgas is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The highlight for us was that the analysts increased their revenue forecasts for Italgas next year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at €5.96, with the latest estimates not enough to have an impact on their price targets.

At least one of Italgas' ten analysts has provided estimates out to 2026, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Italgas (1 can't be ignored!) that you should be aware of.

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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.