The Gaztransport & Technigaz SA (EPA:GTT) Half-Year Results Are Out And Analysts Have Published New Forecasts

Investors in Gaztransport & Technigaz SA (EPA:GTT) had a good week, as its shares rose 3.5% to close at €165 following the release of its interim results. Results overall were respectable, with statutory earnings of €9.37 per share roughly in line with what the analysts had forecast. Revenues of €389m came in 5.0% ahead of analyst predictions. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the six analysts covering Gaztransport & Technigaz are now predicting revenues of €769.9m in 2025. If met, this would reflect a modest 4.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 10% to €10.64. In the lead-up to this report, the analysts had been modelling revenues of €769.1m and earnings per share (EPS) of €11.12 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Check out our latest analysis for Gaztransport & Technigaz

The consensus price target held steady at €177, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 €196 per share, while the most pessimistic values it at €145. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Gaztransport & Technigaz's revenue growth is expected to slow, with the forecast 9.6% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.8% annually. Even after the forecast slowdown in growth, it seems obvious that Gaztransport & Technigaz is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Gaztransport & Technigaz analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Gaztransport & Technigaz is showing 1 warning sign 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.