Solaria Energía y Medio Ambiente, S.A. (BME:SLR) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

As you might know, Solaria Energía y Medio Ambiente, S.A. (BME:SLR) recently reported its first-quarter numbers. Revenue greatly exceeded expectations at €49m, some 33% ahead of analyst forecasts. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Solaria Energía y Medio Ambiente after the latest results.

See our latest analysis for Solaria Energía y Medio Ambiente

Following the latest results, Solaria Energía y Medio Ambiente's 13 analysts are now forecasting revenues of €240.4m in 2024. This would be an okay 2.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decline 12% to €0.75 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €259.4m and earnings per share (EPS) of €0.79 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

It'll come as no surprise then, to learn that the analysts have cut their price target 5.3% to €14.78. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Solaria Energía y Medio Ambiente analyst has a price target of €21.10 per share, while the most pessimistic values it at €9.60. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Solaria Energía y Medio Ambiente's revenue growth is expected to slow, with the forecast 3.7% annualised growth rate until the end of 2024 being well below the historical 38% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 0.2% annually. 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 to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Solaria Energía y Medio Ambiente's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Solaria Energía y Medio Ambiente. Long-term earnings power is much more important than next year's profits. 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.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Solaria Energía y Medio Ambiente (1 is a bit concerning!) that you need to be mindful 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.