Solaria Energía y Medio Ambiente, S.A. (BME:SLR) Just Reported Third-Quarter Earnings And Analysts Are Lifting Their Estimates

Shareholders of Solaria Energía y Medio Ambiente, S.A. (BME:SLR) will be pleased this week, given that the stock price is up 14% to €17.86 following its latest third-quarter results. Revenues came in at €104m, an impressive 53% ahead of analyst forecasts. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from Solaria Energía y Medio Ambiente's 14 analysts is for revenues of €320.1m in 2026. This would reflect a satisfactory 2.6% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to plunge 31% to €0.97 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €298.8m and earnings per share (EPS) of €0.91 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Check out our latest analysis for Solaria Energía y Medio Ambiente

With these upgrades, we're not surprised to see that the analysts have lifted their price target 13% to €14.99per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Solaria Energía y Medio Ambiente analyst has a price target of €25.40 per share, while the most pessimistic values it at €8.10. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

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. 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 2026 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 27% over the past 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 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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Solaria Energía y Medio Ambiente going out to 2027, and you can see them free on our platform here..

Even so, be aware that Solaria Energía y Medio Ambiente is showing 2 warning signs in our investment analysis , you should know about...

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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.