Engie Energia Chile S.A. Just Beat EPS By 73%: Here's What Analysts Think Will Happen Next

Engie Energia Chile S.A. (SNSE:ECL) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 17% higher than the analysts had forecast, at US$582m, while EPS were US$0.10 beating analyst models by 73%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Engie Energia Chile after the latest results.

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After the latest results, the consensus from Engie Energia Chile's five analysts is for revenues of US$1.84b in 2025, which would reflect an uncomfortable 8.3% decline in revenue compared to the last year of performance. Statutory earnings per share are expected to plunge 21% to US$0.20 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.78b and earnings per share (EPS) of US$0.20 in 2025. So it's pretty clear consensus is mixed on Engie Energia Chile after the latest results; whilethe analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

Check out our latest analysis for Engie Energia Chile

The consensus price target was unchanged at CL$1,198, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Engie Energia Chile at CL$1,365 per share, while the most bearish prices it at CL$1,070. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 16% annualised decline to the end of 2025. That is a notable change from historical growth of 9.3% 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 0.5% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Engie Energia Chile is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Engie Energia Chile. 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 CL$1,198, 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 forecasts for Engie Energia Chile going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Engie Energia Chile (1 shouldn't be ignored) you should be aware of.

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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.