Enagás, S.A. Just Beat EPS By 7.6%: Here's What Analysts Think Will Happen Next

As you might know, Enagás, S.A. (BME:ENG) recently reported its annual numbers. Results look mixed - while revenue fell marginally short of analyst estimates at €908m, statutory earnings beat expectations 7.6%, with Enagás reporting profits of €1.31 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Enagás

Following last week's earnings report, Enagás' 17 analysts are forecasting 2024 revenues to be €894.1m, approximately in line with the last 12 months. Statutory earnings per share are forecast to plummet 27% to €0.95 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €896.4m and earnings per share (EPS) of €0.91 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at €16.28, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. The most optimistic Enagás analyst has a price target of €20.07 per share, while the most pessimistic values it at €13.50. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2024 compared to the historical decline of 7.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue shrink 1.1% per year. So it's pretty clear that Enagás revenue is expected to decline at a faster rate than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Enagás' earnings potential next year. They also made no changes to their revenue estimates, implying the business is not expected to experience any major impacts to the current trajectory in the near term, even though it is expected to trail the wider industry. The consensus price target held steady at €16.28, 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. At Simply Wall St, we have a full range of analyst estimates for Enagás going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 3 warning signs we've spotted with Enagás .

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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.