Carel Industries S.p.A. Just Recorded A 7.7% Revenue Beat: Here's What Analysts Think
Investors in Carel Industries S.p.A. (BIT:CRL) had a good week, as its shares rose 4.9% to close at €28.05 following the release of its quarterly results. Results overall were respectable, with statutory earnings of €0.65 per share roughly in line with what the analysts had forecast. Revenues of €199m came in 7.7% ahead of analyst predictions. 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 Carel Industries from seven analysts is for revenues of €746.5m in 2026. If met, it would imply a modest 7.7% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to dip 7.8% to €0.76 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €713.6m and earnings per share (EPS) of €0.70 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
See our latest analysis for Carel Industries
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of €34.57, suggesting that the forecast performance does not have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Carel Industries analyst has a price target of €37.00 per share, while the most pessimistic values it at €32.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Carel Industries' rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 8.7% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Carel Industries is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Carel Industries' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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 Carel Industries. 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 Carel Industries going out to 2028, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for Carel Industries that you need to take into consideration.
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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.