Earnings Release: Here's Why Analysts Cut Their Waga Energy Société anonyme (EPA:WAGA) Price Target To €32.50

Investors in Waga Energy Société anonyme (EPA:WAGA) had a good week, as its shares rose 7.2% to close at €23.80 following the release of its annual results. It was an okay report, and revenues came in at €19m, approximately in line with analyst estimates leading up to the results announcement. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Waga Energy Société anonyme

Taking into account the latest results, the consensus forecast from Waga Energy Société anonyme's dual analysts is for revenues of €42.5m in 2023, which would reflect a huge 121% improvement in sales compared to the last 12 months. Before this earnings announcement, the analysts had been modelling revenues of €42.3m and losses of €0.83 per share in 2023. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate, suggesting that the market believes revenue is more important after these latest results.

Intriguingly,the analysts have cut their price target 10% to €32.50 showing a clear decline in sentiment around Waga Energy Société anonyme's valuation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Waga Energy Société anonyme's growth to accelerate, with the forecast 121% annualised growth to the end of 2023 ranking favourably alongside historical growth of 29% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 2.1% per year. It seems obvious that as part of the brighter growth outlook, Waga Energy Société anonyme is expected to grow faster than the wider industry.

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. On the plus side, they made no changes to their revenue estimates - and they expect sales to perform better than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

We have estimates for Waga Energy Société anonyme from its dual analysts out to 2025, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Waga Energy Société anonyme (1 is potentially serious) 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.