Revenue Downgrade: Here's What Analysts Forecast For Redeia Corporación, S.A. (BME:RED)

Today is shaping up negative for Redeia Corporación, S.A. (BME:RED) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following this downgrade, Redeia Corporación's nine analysts are forecasting 2025 revenues to be €1.7b, approximately in line with the last 12 months. Statutory earnings per share are expected to be €0.93, roughly flat on the last 12 months. Previously, the analysts had been modelling revenues of €2.0b and earnings per share (EPS) of €0.94 in 2025. So there's been a clear change in analyst sentiment in the recent update, with the analysts making a measurable cut to revenues and reconfirming their earnings per share estimates.

Check out our latest analysis for Redeia Corporación

The average price target was steady at €18.38 even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's also worth noting that the years of declining sales look to have come to an end, with the forecast for flat revenues to the end of 2025. Historically, Redeia Corporación's sales have 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 3.5% annually. So it's pretty clear that, although revenues are improving, Redeia Corporación is still expected to grow slower than the industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Redeia Corporación's revenues are expected to grow slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Redeia Corporación after today.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Redeia Corporación going out to 2027, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.