Earnings Update: Enagás, S.A. (BME:ENG) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

As you might know, Enagás, S.A. (BME:ENG) recently reported its first-quarter numbers. It was an okay result overall, with revenues coming in at €210m, roughly what the analysts had been expecting. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus, from the 14 analysts covering Enagás, is for revenues of €854.7m in 2025. This implies a small 4.3% reduction in Enagás' revenue over the past 12 months. Enagás is also expected to turn profitable, with statutory earnings of €1.00 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €858.0m and earnings per share (EPS) of €0.99 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Enagás

There were no changes to revenue or earnings estimates or the price target of €14.97, suggesting that the company has met expectations in its recent result. 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 Enagás at €19.04 per share, while the most bearish prices it at €11.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. Over the past five years, revenues have declined around 4.7% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 5.7% decline in revenue until the end of 2025. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.7% per year. So while a broad number of companies are forecast to grow, unfortunately Enagás is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €14.97, 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 Enagás. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Enagás analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Enagás (1 is a bit unpleasant!) that we have uncovered.

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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.