Revenue Beat: Engie SA Exceeded Revenue Forecasts By 85% And Analysts Are Updating Their Estimates

Shareholders might have noticed that Engie SA (EPA:ENGI) filed its quarterly result this time last week. The early response was not positive, with shares down 2.8% to €19.06 in the past week. Revenue of €15b came in a notable 85% ahead of expectations, while statutory earnings of €1.65 were in line with what the analysts had been forecasting. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, Engie's 16 analysts currently expect revenues in 2025 to be €75.4b, approximately in line with the last 12 months. Statutory earnings per share are forecast to descend 11% to €1.83 in the same period. Before this earnings report, the analysts had been forecasting revenues of €74.3b and earnings per share (EPS) of €1.82 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.

View our latest analysis for Engie

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €21.23. 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. There are some variant perceptions on Engie, with the most bullish analyst valuing it at €24.00 and the most bearish at €17.50 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Engie shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Engie's past performance and to peers in the same industry. We would highlight that Engie's revenue growth is expected to slow, with the forecast 2.9% annualised growth rate until the end of 2025 being well below the historical 9.1% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.6% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Engie.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €21.23, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Engie. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Engie analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Engie (2 shouldn't be ignored) 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.