Results: Iberdrola, S.A. Beat Earnings Expectations And Analysts Now Have New Forecasts

Iberdrola, S.A. (BME:IBE) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues €10b fell badly short of expectations, missing analyst targets by 24%. Statutory earnings per share (EPS) of €0.20 performed better, coming in 8.7% above analyst models. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Iberdrola after the latest results.

See our latest analysis for Iberdrola

Taking into account the latest results, the current consensus from Iberdrola's 17 analysts is for revenues of €49.3b in 2025. This would reflect a notable 8.9% increase on its revenue over the past 12 months. Statutory earnings per share are expected to decline 16% to €0.88 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €49.1b and earnings per share (EPS) of €0.87 in 2025. 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.

The analysts reconfirmed their price target of €13.89, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Iberdrola, with the most bullish analyst valuing it at €16.00 and the most bearish at €9.33 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Iberdrola's past performance and to peers in the same industry. We would highlight that Iberdrola's revenue growth is expected to slow, with the forecast 7.1% annualised growth rate until the end of 2025 being well below the historical 9.5% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.6% annually. So it's pretty clear that, while Iberdrola's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €13.89, 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. We have estimates - from multiple Iberdrola analysts - 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 3 warning signs for Iberdrola (1 is potentially serious!) 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.