Stock Analysis

Analysts Are Updating Their La Française de l'Energie S.A. (EPA:FDE) Estimates After Its Full-Year Results

ENXTPA:FDE
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It's been a good week for La Française de l'Energie S.A. (EPA:FDE) shareholders, because the company has just released its latest full-year results, and the shares gained 2.5% to €28.35. The result was fairly weak overall, with revenues of €31m being 8.6% less than what the analysts had been modelling. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for La Française de l'Energie

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ENXTPA:FDE Earnings and Revenue Growth October 27th 2024

After the latest results, the four analysts covering La Française de l'Energie are now predicting revenues of €40.4m in 2025. If met, this would reflect a major 29% improvement in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €40.5m and earnings per share (EPS) of €2.02 in 2025. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

We'd also point out that thatthe analysts have made no major changes to their price target of €60.33. 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 La Française de l'Energie analyst has a price target of €70.00 per share, while the most pessimistic values it at €52.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting La Française de l'Energie is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that La Française de l'Energie's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 29% growth on an annualised basis. This is compared to a historical growth rate of 36% 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 0.4% annually. So it's pretty clear that, while La Française de l'Energie's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €60.33, with the latest estimates not enough to have an impact on their price targets.

At least one of La Française de l'Energie's four analysts has provided estimates out to 2027, which can be seen for free on our platform here.

You still need to take note of risks, for example - La Française de l'Energie has 1 warning sign we think 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.