Broker Revenue Forecasts For Grenergy Renovables, S.A. (BME:GRE) Are Surging Higher

Grenergy Renovables, S.A. (BME:GRE) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Grenergy Renovables will make substantially more sales than they'd previously expected. The market may be pricing in some blue sky too, with the share price gaining 12% to €31.34 in the last 7 days. Could this upgrade be enough to drive the stock even higher?

After the upgrade, the consensus from Grenergy Renovables' five analysts is for revenues of €178m in 2022, which would reflect a painful 28% decline in sales compared to the last year of performance. Before the latest update, the analysts were foreseeing €157m of revenue in 2022. It looks like there's been a clear increase in optimism around Grenergy Renovables, given the substantial gain in revenue forecasts.

Check out our latest analysis for Grenergy Renovables

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 47% by the end of 2022. This indicates a significant reduction from annual growth of 42% 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 3.5% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Grenergy Renovables is expected to lag the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Grenergy Renovables.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 5 potential warning signs with Grenergy Renovables, including its declining profit margins. For more information, you can click through to our platform to learn more about this and the 3 other warning signs we've identified .

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.