Results: Gaztransport & Technigaz SA Exceeded Expectations And The Consensus Has Updated Its Estimates

It's been a pretty great week for Gaztransport & Technigaz SA (EPA:GTT) shareholders, with its shares surging 16% to €155 in the week since its latest annual results. Gaztransport & Technigaz reported €644m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €9.37 beat expectations, being 6.5% higher than what the analysts expected. 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.

Check out our latest analysis for Gaztransport & Technigaz

After the latest results, the five analysts covering Gaztransport & Technigaz are now predicting revenues of €782.8m in 2025. If met, this would reflect a sizeable 22% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 16% to €10.87. In the lead-up to this report, the analysts had been modelling revenues of €788.2m and earnings per share (EPS) of €10.81 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of €167, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Gaztransport & Technigaz analyst has a price target of €180 per share, while the most pessimistic values it at €152. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Gaztransport & Technigaz 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 clear from the latest estimates that Gaztransport & Technigaz's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 11% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.6% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Gaztransport & Technigaz to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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.

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 Gaztransport & Technigaz going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Gaztransport & Technigaz (at least 2 which can't be ignored) , and understanding these should be part of your investment process.

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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.