Investors in Infrastrutture Wireless Italiane S.p.A. (BIT:INW) had a good week, as its shares rose 2.9% to close at €7.52 following the release of its third-quarter results. It was an okay result overall, with revenues coming in at €269m, roughly what the analysts had been expecting. Earnings are an important time for investors, as they can track a company’s performance, look at what the analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. We’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, Infrastrutture Wireless Italiane’s 16 analysts are now forecasting revenues of €1.10b in 2027. This would be a reasonable 2.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dip 4.4% to €0.34 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.10b and earnings per share (EPS) of €0.35 in 2027. So it looks like there’s been a small decline in overall sentiment after the recent results – there’s been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
See our latest analysis for Infrastrutture Wireless Italiane
The consensus price target held steady at €7.59, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Infrastrutture Wireless Italiane at €9.30 per share, while the most bearish prices it at €6.50. 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 Infrastrutture Wireless Italiane shareholders.
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. We would highlight that Infrastrutture Wireless Italiane’s revenue growth is expected to slow, with the forecast 2.1% annualised growth rate until the end of 2027 being well below the historical 7.2% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.2% annually. Factoring in the forecast slowdown in growth, it looks like Infrastrutture Wireless Italiane is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Infrastrutture Wireless Italiane. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Infrastrutture Wireless Italiane going out to 2028, and you can see them free on our platform here.
That said, it’s still necessary to consider the ever-present spectre of investment risk. We’ve identified 2 warning signs with Infrastrutture Wireless Italiane , and understanding them should be part of your investment process.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
