Analysts Have Made A Financial Statement On NRJ Group SA's (EPA:NRG) Half-Yearly Report

It's been a good week for NRJ Group SA (EPA:NRG) shareholders, because the company has just released its latest half-year results, and the shares gained 6.9% to €8.04. Results were roughly in line with estimates, with revenues of €192m and statutory earnings per share of €0.58. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for NRJ Group

Taking into account the latest results, the current consensus, from the two analysts covering NRJ Group, is for revenues of €402.0m in 2024. This implies a small 3.1% reduction in NRJ Group's revenue over the past 12 months. Statutory per-share earnings are expected to be €0.65, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €402.4m and earnings per share (EPS) of €0.60 in 2024. So the consensus seems to have become somewhat more optimistic on NRJ Group's earnings potential following these results.

There's been no major changes to the consensus price target of €9.90, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the NRJ Group's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 6.2% annualised decline to the end of 2024. That is a notable change from historical growth of 1.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.9% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - NRJ Group is expected to lag 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 NRJ Group following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 analyst estimates for NRJ Group going out as far as 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for NRJ Group that you need to be mindful of.

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

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