Terna S.p.A. (BIT:TRN) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Last week saw the newest annual earnings release from Terna S.p.A. (BIT:TRN), an important milestone in the company's journey to build a stronger business. The results were positive, with revenue coming in at €3.2b, beating analyst expectations by 2.7%. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Terna

Taking into account the latest results, the current consensus from Terna's 14 analysts is for revenues of €3.48b in 2024. This would reflect a meaningful 9.2% increase on its revenue over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of €3.39b and earnings per share (EPS) of €0.48 in 2024. The thing that stands out most is that, while there's been a small lift in 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 €7.95. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Terna, with the most bullish analyst valuing it at €9.30 and the most bearish at €6.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Terna's rate of growth is expected to accelerate meaningfully, with the forecast 9.2% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.9% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 0.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Terna to grow faster than the wider industry.

The Bottom Line

The highlight for us was that the analysts increased their revenue forecasts for Terna next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than 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.

At least one of Terna's 14 analysts has provided estimates out to 2026, which can be seen for free on our platform here.

You still need to take note of risks, for example - Terna has 2 warning signs (and 1 which is a bit concerning) we think 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.