Earnings Update: Gaztransport & Technigaz SA (EPA:GTT) Just Reported Its Interim Results And Analysts Are Updating Their Forecasts

Gaztransport & Technigaz SA (EPA:GTT) came out with its half-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a credible result overall, with revenues of €295m and statutory earnings per share of €5.43 both in line with analyst estimates, showing that Gaztransport & Technigaz is executing in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Gaztransport & Technigaz

Taking into account the latest results, the consensus forecast from Gaztransport & Technigaz's six analysts is for revenues of €621.0m in 2024. This reflects a solid 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 8.5% to €8.43. In the lead-up to this report, the analysts had been modelling revenues of €616.4m and earnings per share (EPS) of €7.58 in 2024. Although the revenue estimates have not really changed, we can see there's been a solid gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target was unchanged at €165, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Gaztransport & Technigaz analyst has a price target of €175 per share, while the most pessimistic values it at €148. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 30% annualised growth to the end of 2024 ranking favourably alongside historical growth of 7.9% 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 0.8% annually. It seems obvious that as part of the brighter growth outlook, Gaztransport & Technigaz is 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 Gaztransport & Technigaz following these results. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that Gaztransport & Technigaz's revenue is expected to perform better 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.

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.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Gaztransport & Technigaz (1 is concerning) 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com