Earnings Miss: Enefit Green AS Missed EPS By 19% And Analysts Are Revising Their Forecasts

Shareholders might have noticed that Enefit Green AS (TAL:EGR1T) filed its full-year result this time last week. The early response was not positive, with shares down 6.4% to €3.26 in the past week. Statutory earnings per share of €0.21 unfortunately missed expectations by 19%, although it was encouraging to see revenues of €230m exceed expectations by 3.8%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Enefit Green after the latest results.

View our latest analysis for Enefit Green

Taking into account the latest results, the two analysts covering Enefit Green provided consensus estimates of €214.5m revenue in 2024, which would reflect a measurable 6.8% decline over the past 12 months. Statutory earnings per share are predicted to climb 20% to €0.25. Yet prior to the latest earnings, the analysts had been anticipated revenues of €251.1m and earnings per share (EPS) of €0.38 in 2024. It looks like sentiment has declined substantially in the aftermath of these results, with a substantial drop in revenue estimates and a pretty serious reduction to earnings per share numbers as well.

Despite the cuts to forecast earnings, there was no real change to the €3.90 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

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 6.8% by the end of 2024. This indicates a significant reduction from annual growth of 19% 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 7.2% per year. It's pretty clear that Enefit Green's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Enefit Green. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Even so, be aware that Enefit Green is showing 3 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

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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.