CPFL Energia S.A. Just Beat EPS By 32%: Here's What Analysts Think Will Happen Next

CPFL Energia S.A. (BVMF:CPFE3) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of R$11b, some 8.5% above estimates, and statutory earnings per share (EPS) coming in at R$1.35, 32% ahead of expectations. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

We've discovered 2 warning signs about CPFL Energia. View them for free.

Taking into account the latest results, the current consensus, from the nine analysts covering CPFL Energia, is for revenues of R$39.5b in 2025. This implies a definite 8.3% reduction in CPFL Energia's revenue over the past 12 months. Statutory earnings per share are forecast to fall 16% to R$3.90 in the same period. In the lead-up to this report, the analysts had been modelling revenues of R$39.8b and earnings per share (EPS) of R$3.76 in 2025. So the consensus seems to have become somewhat more optimistic on CPFL Energia's earnings potential following these results.

See our latest analysis for CPFL Energia

The consensus price target was unchanged at R$39.73, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on CPFL Energia, with the most bullish analyst valuing it at R$45.90 and the most bearish at R$35.63 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 11% by the end of 2025. This indicates a significant reduction from annual growth of 6.8% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 1.9% per year. So it's pretty clear that CPFL Energia's revenues are expected to shrink faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around CPFL Energia's earnings potential next year. The consensus also reconfirmed their revenue estimates, suggesting that it is performing in line with expectations. Plus, our data suggests that CPFL Energia is expected to perform worse than the wider industry. The consensus price target held steady at R$39.73, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for CPFL Energia going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for CPFL Energia that we have uncovered.

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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.