Elia Group SA/NV Just Beat EPS By 15%: Here's What Analysts Think Will Happen Next

It's been a good week for Elia Group SA/NV (EBR:ELI) shareholders, because the company has just released its latest half-year results, and the shares gained 3.8% to €95.35. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at €2.0b, statutory earnings beat expectations by a notable 15%, coming in at €2.47 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.

View our latest analysis for Elia Group

After the latest results, the nine analysts covering Elia Group are now predicting revenues of €4.62b in 2024. If met, this would reflect a huge 31% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 4.7% to €4.89. Before this earnings report, the analysts had been forecasting revenues of €4.55b and earnings per share (EPS) of €4.89 in 2024. 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 €119. 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. Currently, the most bullish analyst values Elia Group at €135 per share, while the most bearish prices it at €94.30. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Elia Group's growth to accelerate, with the forecast 71% annualised growth to the end of 2024 ranking favourably alongside historical growth of 14% per annum 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 1.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Elia Group to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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. The consensus price target held steady at €119, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Elia Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Elia Group going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Elia Group 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com