Prysmian S.p.A. Just Missed Earnings - But Analysts Have Updated Their Models
Last week, you might have seen that Prysmian S.p.A. (BIT:PRY) released its interim result to the market. The early response was not positive, with shares down 5.3% to €120 in the past week. It was not a great result overall. Although revenues beat expectations, hitting €11b, statutory earnings missed analyst forecasts by 18%, coming in at just €1.06 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for Prysmian from 19 analysts is for revenues of €22.2b in 2026. If met, it would imply an okay 2.1% increase on its revenue over the past 12 months. Statutory earnings per share are expected to shrink 2.0% to €4.73 in the same period. Before this earnings report, the analysts had been forecasting revenues of €21.9b and earnings per share (EPS) of €4.76 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Prysmian
The analysts reconfirmed their price target of €153, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Prysmian analyst has a price target of €190 per share, while the most pessimistic values it at €90.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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 Prysmian's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.1% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.8% per year. Factoring in the forecast slowdown in growth, it seems obvious that Prysmian is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Prysmian's revenue is expected to perform worse 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Prysmian analysts - going out to 2028, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for Prysmian that you need to take into consideration.
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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.