Shareholders will be ecstatic, with their stake up 32% over the past week following Seco S.p.A.'s (BIT:IOT) latest half-year results. Results were overall in line with expectations, with the company breaking even at the statutory earnings per share (EPS) level on €99m in revenue. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the latest results, Seco's five analysts are now forecasting revenues of €218.4m in 2026. This would be a notable 9.8% improvement in revenue compared to the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €218.1m and earnings per share (EPS) of €0.056 in 2026. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.
Check out our latest analysis for Seco
The average price target rose 17% to €4.31, with the analysts clearly having become more optimistic about Seco'sprospects following these results. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Seco, with the most bullish analyst valuing it at €4.63 and the most bearish at €3.50 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Seco is an easy business to forecast or the the analysts are all using similar assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Seco's past performance and to peers in the same industry. It's clear from the latest estimates that Seco's rate of growth is expected to accelerate meaningfully, with the forecast 21% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 9.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Seco is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
We have estimates for Seco from its five analysts out to 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Seco you should be aware of.
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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.