Enefit Green AS (TAL:EGR1T) Reported Earnings Last Week And Analysts Are Already Upgrading Their Estimates

Enefit Green AS (TAL:EGR1T) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a workmanlike result, with revenues of €69m coming in 3.3% ahead of expectations, and statutory earnings per share of €0.21, in line with analyst appraisals. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Enefit Green

Following last week's earnings report, Enefit Green's three analysts are forecasting 2024 revenues to be €214.4m, approximately in line with the last 12 months. Statutory earnings per share are predicted to surge 36% to €0.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of €199.5m and earnings per share (EPS) of €0.27 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a solid gain to earnings per share in particular.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of €3.94, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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 Enefit Green analyst has a price target of €4.20 per share, while the most pessimistic values it at €3.60. 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. We would highlight that revenue is expected to reverse, with a forecast 2.5% annualised decline to the end of 2024. That is a notable change from historical growth of 17% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.7% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Enefit Green is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Enefit Green following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at €3.94, with the latest estimates not enough to have an impact on their price targets.

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. We have estimates - from multiple Enefit Green analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Enefit Green is showing 2 warning signs in our investment analysis , and 1 of those is a bit concerning...

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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.