As you might know, Salcef Group S.p.A. (BIT:SCF) last week released its latest full-year, and things did not turn out so great for shareholders. It was a pretty negative result overall, with revenues of €315m missing analyst predictions by 3.8%. Worse, the business reported a statutory loss of per share, much larger than the analysts had forecast prior to the result. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Salcef Group from dual analysts is for revenues of €327.1m in 2020 which, if met, would be a modest 3.8% increase on its sales over the past 12 months. Statutory earnings per share are expected to nosedive 99% to €0.96 in the same period. Before this earnings report, the analysts had been forecasting revenues of €349.3m and earnings per share (EPS) of €1.04 in 2020. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
The analysts made no major changes to their price target of €12.13, suggesting the downgrades are not expected to have a long-term impact on Salcef Group's valuation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Salcef Group's historical trends, as next year's 3.8% revenue growth is roughly in line with 4.3% annual revenue growth over the past three years. Compare this with the wider industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.0% next year. So it's pretty clear that Salcef Group is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Salcef Group. They also downgraded their revenue estimates, although industry data suggests that Salcef Group's revenues are expected to grow faster than the wider industry. The consensus price target held steady at €12.13, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Salcef Group. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2022, which can be seen for free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Salcef Group .
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