Earnings Beat: Gaztransport & Technigaz SA Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Gaztransport & Technigaz SA (EPA:GTT) just released its latest annual results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 3.1% to hit €428m. Statutory earnings per share (EPS) came in at €5.43, some 9.8% above whatthe analysts had expected. 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.

View our latest analysis for Gaztransport & Technigaz

Taking into account the latest results, the most recent consensus for Gaztransport & Technigaz from six analysts is for revenues of €612.2m in 2024. If met, it would imply a major 43% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 44% to €7.82. Yet prior to the latest earnings, the analysts had been anticipated revenues of €591.9m and earnings per share (EPS) of €7.42 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.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 6.0% to €155per share. 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 Gaztransport & Technigaz analyst has a price target of €175 per share, while the most pessimistic values it at €130. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. The analysts are definitely expecting Gaztransport & Technigaz's growth to accelerate, with the forecast 43% annualised growth to the end of 2024 ranking favourably alongside historical growth of 5.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 2.1% annually. So it's clear with the acceleration in growth, Gaztransport & Technigaz is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Gaztransport & Technigaz's earnings potential next year. Fortunately, they also upgraded their revenue estimates, and our data indicates it is expected to perform better than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Gaztransport & Technigaz going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Gaztransport & Technigaz (1 is concerning!) that 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.