IGas Energy plc Just Missed Earnings; Here's What Analysts Are Forecasting Now

IGas Energy plc (LON:IGAS) shareholders are probably feeling a little disappointed, since its shares fell 7.6% to UK£0.16 in the week after its latest annual results. The results don't look great, especially considering that the analysts had been forecasting a profit and IGas Energy delivered a statutory loss of UK£0.093 per share. Revenues of UK£59m did beat expectations by 4.8% though. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for IGas Energy

Taking into account the latest results, the dual analysts covering IGas Energy provided consensus estimates of UK£49.9m revenue in 2023, which would reflect an uneasy 16% decline on its sales over the past 12 months. IGas Energy is also expected to turn profitable, with statutory earnings of UK£0.12 per share. In the lead-up to this report, the analysts had been modelling revenues of UK£48.2m and earnings per share (EPS) of UK£0.10 in 2023. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a solid gain to earnings per share in particular.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of UK£0.63, suggesting that the forecast performance does not have a long term impact on the company's valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 16% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 3.5% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 3.1% per year. So it's pretty clear that IGas Energy's revenues are expected to shrink faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around IGas Energy's earnings potential next year. Fortunately, they also upgraded their revenue estimates, although IGas Energy'srevenues are still expected to trail 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 analyst estimates for IGas Energy going out as far as 2025, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for IGas Energy (1 doesn't sit too well with us!) that 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.