Redeia Corporación, S.A. (BME:RED) Just Released Its Interim Results And Analysts Are Updating Their Estimates

It's been a good week for Redeia Corporación, S.A. (BME:RED) shareholders, because the company has just released its latest half-year results, and the shares gained 3.4% to €16.84. Revenues were €437m, and Redeia Corporación was a dismal 11% short of 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Redeia Corporación

After the latest results, the consensus from Redeia Corporación's 15 analysts is for revenues of €1.90b in 2024, which would reflect a discernible 5.4% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to fall 17% to €0.93 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €1.90b and earnings per share (EPS) of €0.92 in 2024. 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.

There were no changes to revenue or earnings estimates or the price target of €18.14, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Redeia Corporación, with the most bullish analyst valuing it at €21.20 and the most bearish at €15.60 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.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 11% by the end of 2024. This indicates a significant reduction from annual growth of 0.5% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 1.2% per year. It's pretty clear that Redeia Corporación'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 the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €18.14, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Redeia Corporación. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Redeia Corporación going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Redeia Corporación (including 1 which is potentially serious) .

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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.

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