Revenue Beat: Iren SpA Exceeded Revenue Forecasts By 17% And Analysts Are Updating Their Estimates

Investors in Iren SpA (BIT:IRE) had a good week, as its shares rose 4.9% to close at €2.55 following the release of its quarterly results. Iren beat revenue forecasts by a solid 17% to hit €2.1b. Statutory earnings per share came in at €0.20, in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the three analysts covering Iren are now predicting revenues of €6.70b in 2025. If met, this would reflect a satisfactory 2.7% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €6.54b and earnings per share (EPS) of €0.23 in 2025. What's really interesting is that while the consensus made a small lift in revenue estimates, it no longer provides an earnings per share estimate. This suggests that revenues are now the focus of the business after this latest result.

See our latest analysis for Iren

We'd also point out that thatthe analysts have made no major changes to their price target of €2.76. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Iren at €2.85 per share, while the most bearish prices it at €2.70. This is a very narrow spread of estimates, implying either that Iren is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Iren's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.6% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this to the 19 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.9% per year. So it's pretty clear that, while Iren's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts upgraded their revenue estimates for 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

We have estimates for Iren from its three analysts out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Iren 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.