Revenue Beat: Grenergy Renovables, S.A. Exceeded Revenue Forecasts By 28% And Analysts Are Updating Their Estimates

Last week, you might have seen that Grenergy Renovables, S.A. (BME:GRE) released its third-quarter result to the market. The early response was not positive, with shares down 4.1% to €28.15 in the past week. Revenue of €192m beat expectations by an impressive 28%, while statutory earnings per share (EPS) were €1.72, in line with estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Grenergy Renovables

Following the latest results, Grenergy Renovables' nine analysts are now forecasting revenues of €810.0m in 2025. This would be a huge 148% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Grenergy Renovables forecast to report a statutory profit of €4.01 per share. Before this earnings report, the analysts had been forecasting revenues of €803.6m and earnings per share (EPS) of €4.05 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €46.44. 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. Currently, the most bullish analyst values Grenergy Renovables at €70.00 per share, while the most bearish prices it at €30.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. It's clear from the latest estimates that Grenergy Renovables' rate of growth is expected to accelerate meaningfully, with the forecast 107% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 33% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Grenergy Renovables to grow faster than the wider 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than 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.

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 forecasts for Grenergy Renovables going out to 2026, 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 Grenergy Renovables that we have uncovered.

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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.