What Does The Future Hold For Waga Energy Société anonyme (EPA:WAGA)? These Analysts Have Been Cutting Their Estimates

Today is shaping up negative for Waga Energy Société anonyme (EPA:WAGA) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the current consensus from Waga Energy Société anonyme's dual analysts is for revenues of €19m in 2022 which - if met - would reflect a sizeable 55% increase on its sales over the past 12 months. Per-share losses are expected to explode, reaching €0.49 per share. Yet before this consensus update, the analysts had been forecasting revenues of €22m and losses of €0.48 per share in 2022. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

View our latest analysis for Waga Energy Société anonyme

There was no major change to the consensus price target of €35.35, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. 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 Waga Energy Société anonyme analyst has a price target of €35.70 per share, while the most pessimistic values it at €35.00. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

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. It's clear from the latest estimates that Waga Energy Société anonyme's rate of growth is expected to accelerate meaningfully, with the forecast 55% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 31% p.a. 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 6.5% 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 analysts increased their loss per share estimates for this year. Unfortunately, they also downgraded their revenue estimates, and our data indicates sales are expected to outperform the wider market. Even so, earnings per share are more important to the intrinsic value of the business. Given the stark change in sentiment, we'd understand if investors became more cautious on Waga Energy Société anonyme after today.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Waga Energy Société anonyme going out as far as 2024, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.