Snam S.p.A. (BIT:SRG) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

The first-quarter results for Snam S.p.A. (BIT:SRG) were released last week, making it a good time to revisit its performance. It was an okay result overall, with revenues coming in at €970m, roughly what the analysts had been expecting. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the current consensus from Snam's 17 analysts is for revenues of €3.81b in 2025. This would reflect a modest 4.6% increase on its revenue over the past 12 months. Statutory earnings per share are expected to decrease 3.2% to €0.41 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €3.79b and earnings per share (EPS) of €0.40 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Snam

There's been no major changes to the consensus price target of €5.27, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. There are some variant perceptions on Snam, with the most bullish analyst valuing it at €6.00 and the most bearish at €4.20 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Snam shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Snam's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Snam's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.2% growth on an annualised basis. This is compared to a historical growth rate of 8.8% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.7% per year. Even after the forecast slowdown in growth, it seems obvious that Snam is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Snam's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at €5.27, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Snam. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Snam going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for Snam (of which 1 shouldn't be ignored!) you should know about.

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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.