Enel Chile S.A. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

A week ago, Enel Chile S.A. (SNSE:ENELCHILE) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 6.3% to hit CL$1.1t. Enel Chile also reported a statutory profit of CL$2.15, which was an impressive 23% above what the analysts had forecast. 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 Enel Chile

Taking into account the latest results, the five analysts covering Enel Chile provided consensus estimates of CL$3.97t revenue in 2024, which would reflect a measurable 4.4% decline over the past 12 months. Statutory earnings per share are expected to decline 17% to CL$7.65 in the same period. In the lead-up to this report, the analysts had been modelling revenues of CL$4.04t and earnings per share (EPS) of CL$7.01 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of CL$62.50, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic Enel Chile analyst has a price target of CL$70.00 per share, while the most pessimistic values it at CL$55.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 5.9% by the end of 2024. This indicates a significant reduction from annual growth of 15% 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 Enel Chile's revenues are expected to perform substantially worse 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 Enel Chile's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Enel Chile's revenue is expected to perform worse than the wider industry. The consensus price target held steady at CL$62.50, 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. We have forecasts for Enel Chile going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 4 warning signs for Enel Chile (1 makes us a bit uncomfortable!) that 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.