Newsflash: Naturgy Energy Group, S.A. (BME:NTGY) Analysts Have Been Trimming Their Revenue Forecasts

Market forces rained on the parade of Naturgy Energy Group, S.A. (BME:NTGY) shareholders today, when the analysts downgraded their forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the latest downgrade, the current consensus, from the twelve analysts covering Naturgy Energy Group, is for revenues of €19b in 2025, which would reflect a perceptible 2.2% reduction in Naturgy Energy Group's sales over the past 12 months. Statutory earnings per share are anticipated to fall 13% to €1.81 in the same period. Previously, the analysts had been modelling revenues of €22b and earnings per share (EPS) of €1.79 in 2025. Indeed we can see that the consensus opinion has undergone some fundamental changes following the recent consensus updates, with a measurable cut to revenues and some minor tweaks to earnings numbers.

Check out our latest analysis for Naturgy Energy Group

The consensus has reconfirmed its price target of €24.98, showing that the analysts don't expect weaker sales expectationsthis year to have a material impact on Naturgy Energy Group's market value.

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. We would highlight that sales are expected to reverse, with a forecast 2.2% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 7.1% 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 3.1% 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 there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Naturgy Energy Group after today.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Naturgy Energy Group, including a weak balance sheet. Learn more, and discover the 2 other flags we've identified, for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.