The Redeia Corporación, S.A. (BME:RED) Third-Quarter Results Are Out And Analysts Have Published New Forecasts

As you might know, Redeia Corporación, S.A. (BME:RED) recently reported its third-quarter numbers. Revenues were €454m, with Redeia Corporación reporting some 5.0% below analyst expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Redeia Corporación

Taking into account the latest results, Redeia Corporación's 14 analysts currently expect revenues in 2025 to be €1.97b, approximately in line with the last 12 months. Statutory earnings per share are expected to decrease 9.3% to €0.95 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €1.97b and earnings per share (EPS) of €0.95 in 2025. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €18.15. 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 €20.50 and the most bearish at €15.60 per share. This is a very narrow spread of estimates, implying either that Redeia Corporación is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Redeia Corporación's growth to accelerate, with the forecast 1.0% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.06% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 1.8% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Redeia Corporación is expected to grow slower than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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 €18.15, with the latest estimates not enough to have an impact on their price targets.

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 2026, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Redeia Corporación you should be aware of.

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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.