Naturgy Energy Group, S.A. (BME:NTGY) Analysts Are Cutting Their Estimates: Here's What You Need To Know

Shareholders might have noticed that Naturgy Energy Group, S.A. (BME:NTGY) filed its yearly result this time last week. The early response was not positive, with shares down 5.3% to €21.88 in the past week. It was a weak result overall, with Naturgy Energy Group reporting €23b in revenues, which was 22% less than what the analysts had expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Naturgy Energy Group after the latest results.

See our latest analysis for Naturgy Energy Group

Following the recent earnings report, the consensus from 13 analysts covering Naturgy Energy Group is for revenues of €21.7b in 2024. This implies a measurable 4.2% decline in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €26.7b and earnings per share (EPS) of €1.83 in 2024. So we can see that while the consensus made a substantial drop in revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenues after the latest results.

We'd also point out that thatthe analysts have made no major changes to their price target of €23.53. 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 Naturgy Energy Group, with the most bullish analyst valuing it at €27.80 and the most bearish at €16.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.2% by the end of 2024. This indicates a significant reduction from annual growth of 7.7% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 1.9% annually for the foreseeable future. It's pretty clear that Naturgy Energy Group's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their revenue estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at €23.53, with the latest estimates not enough to have an impact on their price targets.

At least one of Naturgy Energy Group's 13 analysts has provided estimates out to 2026, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Naturgy Energy Group you should be aware of, and 1 of them is concerning.

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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.