HELLENiQ ENERGY Holdings S.A. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

HELLENiQ ENERGY Holdings S.A. (ATH:ELPE) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was not a great result overall. Although revenues beat expectations, hitting €13b, statutory earnings missed analyst forecasts by 18%, coming in at just €1.56 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 HELLENiQ ENERGY Holdings

Taking into account the latest results, the current consensus, from the six analysts covering HELLENiQ ENERGY Holdings, is for revenues of €11.4b in 2024. This implies a not inconsiderable 11% reduction in HELLENiQ ENERGY Holdings' revenue over the past 12 months. Statutory earnings per share are forecast to dip 7.9% to €1.44 in the same period. Before this earnings report, the analysts had been forecasting revenues of €11.2b and earnings per share (EPS) of €1.12 in 2024. So it seems there's been a definite increase in optimism about HELLENiQ ENERGY Holdings' future following the latest results, with a considerable lift to the earnings per share forecasts in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of €8.18, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. Currently, the most bullish analyst values HELLENiQ ENERGY Holdings at €9.70 per share, while the most bearish prices it at €6.40. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. We would highlight that revenue is expected to reverse, with a forecast 11% annualised decline to the end of 2024. That is a notable change from historical growth of 12% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 2.1% annually for the foreseeable future. So it's pretty clear that HELLENiQ ENERGY Holdings' 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 HELLENiQ ENERGY Holdings' earnings potential next year. They also upgraded their estimates, with revenue apparently performing well, although it is expected to lag the wider industry this year. 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 estimates - from multiple HELLENiQ ENERGY Holdings analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 4 warning signs for HELLENiQ ENERGY Holdings (1 is significant!) that we have uncovered.

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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.