Analysts Just Shaved Their Gentili Mosconi S.p.A. (BIT:GM) Forecasts Dramatically

Today is shaping up negative for Gentili Mosconi S.p.A. (BIT:GM) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the latest downgrade, the dual analysts covering Gentili Mosconi provided consensus estimates of €43m revenue in 2024, which would reflect an uncomfortable 8.6% decline on its sales over the past 12 months. Statutory earnings per share are supposed to plunge 33% to €0.13 in the same period. Before this latest update, the analysts had been forecasting revenues of €48m and earnings per share (EPS) of €0.20 in 2024. Indeed, we can see that the analysts are a lot more bearish about Gentili Mosconi's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Gentili Mosconi

The consensus price target fell 14% to €3.10, with the weaker earnings outlook clearly leading analyst valuation estimates.

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. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2024 compared to the historical decline of 14% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 8.3% per year. So while a broad number of companies are forecast to grow, unfortunately Gentili Mosconi is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Gentili Mosconi. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Gentili Mosconi.

Uncomfortably, our automated valuation tool also suggests that Gentili Mosconi stock could be overvalued following the downgrade. Shareholders could be left disappointed if these estimates play out. You can learn more about our valuation methodology for free on our platform here.

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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.