Investors in Piaggio & C. SpA (BIT:PIA) had a good week, as its shares rose 10.0% to close at €1.99 following the release of its half-yearly results. It looks like the results were a bit of a negative overall. While revenues of €842m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.4% to hit €0.086 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus from Piaggio & C's seven analysts is for revenues of €1.57b in 2026. This would reflect a credible 5.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 32% to €0.13. In the lead-up to this report, the analysts had been modelling revenues of €1.58b and earnings per share (EPS) of €0.13 in 2026. 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 minor downgrade to their earnings per share forecasts.
See our latest analysis for Piaggio & C
The consensus price target held steady at €2.08, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Piaggio & C at €3.00 per share, while the most bearish prices it at €1.56. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Piaggio & C's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Piaggio & C is forecast to grow faster in the future than it has in the past, with revenues expected to display 11% annualised growth until the end of 2026. If achieved, this would be a much better result than the 3.7% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 3.6% per year. Not only are Piaggio & C's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected 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 in mind, we wouldn't be too quick to come to a conclusion on Piaggio & C. Long-term earnings power is much more important than next year's profits. We have forecasts for Piaggio & C 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 Piaggio & C (including 1 which can't be ignored) .
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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.