Yahoo Finance Rai Way S.p.A. Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year
It's been a good week for Rai Way S.p.A. (BIT:RWAY) shareholders, because the company has just released its latest third-quarter results, and the shares gained 4.5% to €5.85. Results were roughly in line with estimates, with revenues of €55m and earnings per share of €0.22. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest forecasts to see whether analysts have changed their mind on Rai Way after the latest results.
View our latest analysis for Rai Way
After the latest results, the nine analysts covering Rai Way are now predicting revenues of €226.7m in 2020. If met, this would reflect a credible 3.0% improvement in sales compared to the last 12 months. Earnings per share are expected to increase 8.5% to €0.24. In the lead-up to this report, analysts had been modelling revenues of €226.9m and earnings per share (EPS) of €0.25 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at €5.48. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Rai Way at €6.10 per share, while the most bearish prices it at €5.00. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
It can be useful to take a broader overview by seeing how analyst forecasts compare, both to the Rai Way's past performance and to peers in the same market. It's pretty clear that analysts expect Rai Way's revenue growth will slow down substantially, with revenues next year expected to grow 3.0%, compared to a historical growth rate of 4.2% over the past five years. By way of comparison, other companies in this market with analyst coverage, are forecast to grow their revenue at 1.0% next year. Even after the forecast slowdown in growth, it seems obvious that analysts still thinkRai Way will grow faster than the wider market.
The Bottom Line
The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. The consensus price target held steady at €5.48, with the latest estimates not enough to have an impact on analysts' estimated valuations.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Rai Way analysts - going out to 2023, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
