Pirelli & C. S.p.A. (BIT:PIRC) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Pirelli & C reported in line with analyst predictions, delivering revenues of €1.7b and statutory earnings per share of €0.13, suggesting the business is executing well and in line with its plan. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Pirelli & C
Following last week’s earnings report, Pirelli & C’s 16 analysts are forecasting 2025 revenues to be €6.91b, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 26% to €0.54. Yet prior to the latest earnings, the analysts had been anticipated revenues of €6.92b and earnings per share (EPS) of €0.55 in 2025. The consensus analysts don’t seem to have seen anything in these results that would have changed their view on the business, given there’s been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at €6.50. 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 Pirelli & C at €7.30 per share, while the most bearish prices it at €5.80. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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 revenue is expected to reverse, with a forecast 0.3% annualised decline to the end of 2025. That is a notable change from historical growth of 8.4% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining – Pirelli & C is expected to lag the wider industry.
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 Pirelli & C’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 in mind, we wouldn’t be too quick to come to a conclusion on Pirelli & C. Long-term earnings power is much more important than next year’s profits. At Simply Wall St, we have a full range of analyst estimates for Pirelli & C going out to 2026, and you can see them free on our platform here..
Plus, you should also learn about the 2 warning signs we’ve spotted with Pirelli & C .
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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.
