Redeia Corporación, S.A. Just Missed EPS By 19%: Here's What Analysts Think Will Happen Next

Redeia Corporación, S.A. (BME:RED) missed earnings with its latest annual results, disappointing overly-optimistic forecasters. It looks like a clear earnings miss, with both revenues and earnings falling well short of analyst predictions. Revenues of €1.7b missed by 11%, and statutory earnings per share of €0.68 fell short of forecasts by 19%. 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.

Check out our latest analysis for Redeia Corporación

Following last week's earnings report, Redeia Corporación's ten analysts are forecasting 2025 revenues to be €1.68b, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.96b and earnings per share (EPS) of €0.94 in 2025. 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 €18.38. 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. There are some variant perceptions on Redeia Corporación, with the most bullish analyst valuing it at €20.70 and the most bearish at €15.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2025. Historically, Redeia Corporación's top line has shrunk approximately 1.1% annually over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.3% annually. Although Redeia Corporación's revenues are expected to improve, it seems that it is still expected to grow slower 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at €18.38, with the latest estimates not enough to have an impact on their price targets.

We have estimates for Redeia Corporación from its ten analysts out to 2027, and you can see them 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.