It's been a pretty great week for Grenergy Renovables, S.A. (BME:GRE) shareholders, with its shares surging 16% to €39.10 in the week since its latest interim results. Revenue of €192m beat expectations by an impressive 118%, while statutory earnings per share (EPS) were €1.72, in line with estimates. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Grenergy Renovables
Following the latest results, Grenergy Renovables' eight analysts are now forecasting revenues of €438.5m in 2024. This would be a meaningful 20% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €409.3m and earnings per share (EPS) of €1.77 in 2024. What's really interesting is that while the consensus made a slight bump in revenue estimates, it no longer provides an earnings per share estimate. This suggests that revenues are now the focus of the business after this latest result.
The average price target rose 7.0% to €44.71, with the analysts clearly having become more optimistic about Grenergy Renovables'prospects following these results. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Grenergy Renovables analyst has a price target of €70.00 per share, while the most pessimistic values it at €30.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Grenergy Renovables' past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 43% growth on an annualised basis. That is in line with its 36% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 1.7% per year. So it's pretty clear that Grenergy Renovables is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts upgraded their revenue estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
At least one of Grenergy Renovables' eight analysts has provided estimates out to 2026, which can be seen for free on our platform here.
It is also worth noting that we have found 3 warning signs for Grenergy Renovables (2 don't sit too well with us!) that you need to take into consideration.
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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.
About BME:GRE
Reasonable growth potential very low.
