Analysts Have Made A Financial Statement On Energean plc's (LON:ENOG) Yearly Report

It's been a pretty great week for Energean plc (LON:ENOG) shareholders, with its shares surging 15% to UK£12.00 in the week since its latest annual results. It was a pretty bad result overall; while revenues were in line with expectations at US$497m, statutory losses exploded to US$0.55 per share. 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 Energean

Taking into account the latest results, the consensus forecast from Energean's five analysts is for revenues of US$1.02b in 2022, which would reflect a huge 105% improvement in sales compared to the last 12 months. Energean is also expected to turn profitable, with statutory earnings of US$0.97 per share. Before this earnings report, the analysts had been forecasting revenues of US$1.03b and earnings per share (EPS) of US$1.00 in 2022. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at UK£12.97, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Energean, with the most bullish analyst valuing it at UK£17.00 and the most bearish at UK£9.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Energean's rate of growth is expected to accelerate meaningfully, with the forecast 105% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 46% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Energean is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at UK£12.97, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Energean analysts - going out to 2024, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Energean 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.