Grenergy Renovables, S.A. (BME:GRE) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

The third-quarter results for Grenergy Renovables, S.A. (BME:GRE) were released last week, making it a good time to revisit its performance. Revenue greatly exceeded expectations at €249m, some 101% ahead of analyst forecasts. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Following the recent earnings report, the consensus from ten analysts covering Grenergy Renovables is for revenues of €745.7m in 2026. This implies a disturbing 29% decline in revenue compared to the last 12 months. Statutory per-share earnings are expected to be €3.50, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €745.7m and earnings per share (EPS) of €3.50 in 2026. 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.

Check out our latest analysis for Grenergy Renovables

There were no changes to revenue or earnings estimates or the price target of €83.08, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Grenergy Renovables at €100.00 per share, while the most bearish prices it at €72.00. 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.

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 revenue is expected to slow, with a forecast annualised decline of 24% by the end of 2026. This indicates a significant reduction from annual growth of 39% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 0.4% per year. The forecasts do look bearish for Grenergy Renovables, since they're expecting it to shrink faster than 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. 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Grenergy Renovables going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 3 warning signs for Grenergy Renovables you should be aware of, and 1 of them can't be ignored.

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.