Eni (BIT:ENI) Is Up 6.7% After Earnings Beat and €1.8B Buyback Expansion - What's Changed

• Eni S.p.A. recently reported third-quarter earnings that exceeded analyst expectations, with net income rising to €803 million despite a slight decline in sales and revenue, and also announced an increase in its share buyback program to €1.8 billion for 2025.
• Management’s commitment to both higher buybacks and a further dividend reflects confidence in Eni’s capital generation capabilities and its ongoing focus on shareholder returns.
• We'll explore how the expanded buyback program and earnings upgrade may impact Eni's longer-term investment narrative.

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Eni Investment Narrative Recap

To be a shareholder in Eni, you need to believe that the company can sustain and grow its cash flows through both disciplined upstream expansion and a meaningful transformation of its renewables and downstream operations. The recent earnings beat and expanded buyback program support the view that shareholder returns remain a near-term catalyst, while persistent challenges in the chemicals business remain the biggest short-term risk. This latest report does not fundamentally alter the balance between these factors for now.

Among recent announcements, Eni’s decision to increase its share buyback program to €1.8 billion for 2025 stands out, offering a direct response to improved capital generation and financial results. This higher buyback authorization complements continued dividends and may reinforce the short-term support for the stock, even as earnings growth, balance sheet discipline, and operational improvements drive future opportunities and risks.

But in contrast to these positive signals, investors should not overlook the drag from Versalis and ongoing downstream losses...

Read the full narrative on Eni (it's free!)

Eni's outlook anticipates €88.8 billion in revenue and €5.1 billion in earnings by 2028. This reflects a -0.7% annual revenue decline and a €2.8 billion increase in earnings from the current €2.3 billion level.

Uncover how Eni's forecasts yield a €15.63 fair value, in line with its current price.

Exploring Other Perspectives

Three individual fair value estimates from the Simply Wall St Community range from €15.63 to €19.78 per share, showing how your interpretation of Eni’s outlook can vary. With some participants focused on rising shareholder returns and others highlighting persistent risks in legacy businesses, there are several viewpoints to consider on Eni’s future.

Explore 3 other fair value estimates on Eni - why the stock might be worth just €15.63!

Build Your Own Eni Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Eni research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Eni research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Eni's overall financial health at a glance.

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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.

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