Solaria Energía y Medio Ambiente, S.A. (BME:SLR) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

There's been a notable change in appetite for Solaria Energía y Medio Ambiente, S.A. (BME:SLR) shares in the week since its third-quarter report, with the stock down 13% to €8.61. The results were positive, with revenue coming in at €60m, beating analyst expectations by 2.2%. 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 Solaria Energía y Medio Ambiente

Following the latest results, Solaria Energía y Medio Ambiente's 14 analysts are now forecasting revenues of €259.6m in 2025. This would be a major 21% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 22% to €0.76. In the lead-up to this report, the analysts had been modelling revenues of €259.6m and earnings per share (EPS) of €0.77 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.

There were no changes to revenue or earnings estimates or the price target of €13.72, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on Solaria Energía y Medio Ambiente, with the most bullish analyst valuing it at €20.50 and the most bearish at €9.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Solaria Energía y Medio Ambiente's past performance and to peers in the same industry. 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 2025 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 34% 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) 1.7% 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 to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Solaria Energía y Medio Ambiente going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Solaria Energía y Medio Ambiente (including 1 which is a bit unpleasant) .

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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.