Analysts Have Made A Financial Statement On Solaria Energía y Medio Ambiente, S.A.'s (BME:SLR) Half-Yearly Report

Investors in Solaria Energía y Medio Ambiente, S.A. (BME:SLR) had a good week, as its shares rose 3.7% to close at €12.40 following the release of its half-year results. The results were positive, with revenue coming in at €98m, beating analyst expectations by 2.7%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Solaria Energía y Medio Ambiente

Taking into account the latest results, Solaria Energía y Medio Ambiente's 15 analysts currently expect revenues in 2024 to be €231.6m, approximately in line with the last 12 months. Statutory per share are forecast to be €0.80, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €225.6m and earnings per share (EPS) of €0.74 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Despite these upgrades,the analysts have not made any major changes to their price target of €14.22, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. The most optimistic Solaria Energía y Medio Ambiente analyst has a price target of €21.00 per share, while the most pessimistic values it at €9.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Solaria Energía y Medio Ambiente's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.9% growth on an annualised basis. This is compared to a historical growth rate of 36% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 1.8% per year. Even after the forecast slowdown in growth, it seems obvious that Solaria Energía y Medio Ambiente is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Solaria Energía y Medio Ambiente following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at €14.22, 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. We have estimates - from multiple Solaria Energía y Medio Ambiente analysts - 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 2 warning signs for Solaria Energía y Medio Ambiente you should be aware of, and 1 of them is a bit concerning.

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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.