Yahoo Sports Analysts Have Lowered Expectations For PITECO S.p.A. (BIT:PITE) After Its Latest Results
PITECO S.p.A. (BIT:PITE) just released its latest yearly report and things are not looking great. It was a pretty negative result overall, with revenues of €24m missing analyst predictions by 5.1%. Worse, the business reported a statutory loss of per share, much larger than the analysts had forecast prior to the result. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on PITECO after the latest results.
Check out our latest analysis for PITECO
Following the latest results, PITECO's twin analysts are now forecasting revenues of €25.2m in 2020. This would be an okay 4.9% improvement in sales compared to the last 12 months. Per-share earnings are expected to grow 16% to €0.33. In the lead-up to this report, the analysts had been modelling revenues of €28.0m and earnings per share (EPS) of €0.39 in 2020. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.
The consensus price target fell 14% to €7.00, with the weaker earnings outlook clearly leading valuation estimates.
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. We would highlight that PITECO's revenue growth is expected to slow, with forecast 4.9% increase next year well below the historical 15%p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it seems obvious that PITECO is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of PITECO's future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for PITECO going out as far as 2022, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 4 warning signs for PITECO (of which 1 is concerning!) you should know about.
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