Earnings Update: Prysmian S.p.A. (BIT:PRY) Just Reported And Analysts Are Boosting Their Estimates
It's been a pretty great week for Prysmian S.p.A. (BIT:PRY) shareholders, with its shares surging 11% to €110 in the week since its latest third-quarter results. Revenues were €6.4b, and Prysmian came in a solid 11% ahead of 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Prysmian after the latest results.
Taking into account the latest results, the current consensus from Prysmian's 19 analysts is for revenues of €28.2b in 2027. This would reflect a sizeable 26% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 57% to €6.41. Yet prior to the latest earnings, the analysts had been anticipated revenues of €24.8b and earnings per share (EPS) of €6.05 in 2027. Sentiment certainly seems to have improved after the latest results, with a nice gain to revenue and a modest lift to earnings per share estimates.
See our latest analysis for Prysmian
Despite these upgrades,the analysts have not made any major changes to their price target of €153, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Prysmian at €186 per share, while the most bearish prices it at €95.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. It's clear from the latest estimates that Prysmian's rate of growth is expected to accelerate meaningfully, with the forecast 21% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 9.8% 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 10% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Prysmian to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Prysmian following these results. 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.
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.
Plus, you should also learn about the 2 warning signs we've spotted with Prysmian .
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