Enagás, S.A. (BME:ENG) Annual Results: Here's What Analysts Are Forecasting For This Year

Enagás, S.A. (BME:ENG) shareholders are probably feeling a little disappointed, since its shares fell 2.2% to €12.03 in the week after its latest annual results. Revenues were in line with expectations, at €906m, while statutory losses ballooned to €1.15 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Enagás

Taking into account the latest results, the current consensus, from the 14 analysts covering Enagás, is for revenues of €859.8m in 2025. This implies a discernible 5.1% reduction in Enagás' revenue over the past 12 months. Enagás is also expected to turn profitable, with statutory earnings of €0.98 per share. Before this earnings report, the analysts had been forecasting revenues of €859.8m and earnings per share (EPS) of €0.95 in 2025. So the consensus seems to have become somewhat more optimistic on Enagás' earnings potential following these results.

There's been no major changes to the consensus price target of €14.98, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock'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 Enagás analyst has a price target of €19.04 per share, while the most pessimistic values it at €11.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Enagás shareholders.

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 also point out that the forecast 5.1% annualised revenue decline to the end of 2025 is roughly in line with the historical trend, which saw revenues shrink 5.1% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 3.4% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Enagás to suffer worse than 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 Enagás following these results. 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 €14.98, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. 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 shouldn't be ignored!) that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.