Broker Revenue Forecasts For Public Power Corporation S.A. (ATH:PPC) Are Surging Higher

Public Power Corporation S.A. (ATH:PPC) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Public Power will make substantially more sales than they'd previously expected.

After this upgrade, Public Power's four analysts are now forecasting revenues of €8.7b in 2024. This would be an okay 5.6% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to drop 17% to €0.89 in the same period. Previously, the analysts had been modelling revenues of €6.5b and earnings per share (EPS) of €0.89 in 2024. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

See our latest analysis for Public Power

It may not be a surprise to see that the analysts have reconfirmed their price target of €16.69, implying that the uplift in sales is not expected to greatly contribute to Public Power's valuation in the near term.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Public Power's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.5% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 0.02% annually. So it's pretty clear that, while Public Power's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Public Power.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Public Power going out to 2025, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.