Growth Investors: Industry Analysts Just Upgraded Their Enel Chile S.A. (SNSE:ENELCHILE) Revenue Forecasts By 19%

Celebrations may be in order for Enel Chile S.A. (SNSE:ENELCHILE) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. Investor sentiment seems to be improving too, with the share price up 4.9% to CL$46.50 over the past 7 days. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the latest upgrade, the current consensus, from the four analysts covering Enel Chile, is for revenues of CL$4.5t in 2023, which would reflect a noticeable 4.1% reduction in Enel Chile's sales over the past 12 months. Statutory earnings per share are anticipated to tumble 65% to CL$6.79 in the same period. Prior to this update, the analysts had been forecasting revenues of CL$3.8t and earnings per share (EPS) of CL$5.33 in 2023. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Enel Chile

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Enel Chile's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 5.4% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 12% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Enel Chile is expected to lag the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Enel Chile.

Analysts are definitely bullish on Enel Chile, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other concern we've identified .

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.