Revenue Beat: Enbridge Inc. Beat Analyst Estimates By 79%

Enbridge Inc. (TSE:ENB) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. Revenue of CA$19b beat expectations by 79% and statutory earnings per share (EPS) of CA$1.04 exceeded forecasts by 10%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the consensus from Enbridge's ten analysts is for revenues of CA$49.4b in 2025, which would reflect a considerable 19% decline in revenue compared to the last year of performance. Statutory earnings per share are predicted to accumulate 9.1% to CA$2.95. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$42.7b and earnings per share (EPS) of CA$2.95 in 2025. There's clearly been a surge in bullishness around the company's revenue pipeline, even if there's no real change in earnings per share forecasts.

Check out our latest analysis for Enbridge

Even though revenue forecasts increased, there was no change to the consensus price target of CA$66.21, suggesting the analysts are focused on earnings as the driver of value creation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Enbridge analyst has a price target of CA$75.00 per share, while the most pessimistic values it at CA$56.00. This is a very narrow spread of estimates, implying either that Enbridge is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. We would highlight that revenue is expected to reverse, with a forecast 24% annualised decline to the end of 2025. That is a notable change from historical growth of 3.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 1.9% per year. It's pretty clear that Enbridge's revenues are expected to perform substantially worse 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 upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at CA$66.21, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Enbridge analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Enbridge , and understanding them should be part of your investment process.

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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.