Eni S.p.A. (BIT:ENI) Just Released Its First-Quarter Earnings: Here's What Analysts Think

Investors in Eni S.p.A. (BIT:ENI) had a good week, as its shares rose 4.0% to close at €12.76 following the release of its first-quarter results. Eni reported in line with analyst predictions, delivering revenues of €23b and statutory earnings per share of €0.36, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Our free stock report includes 1 warning sign investors should be aware of before investing in Eni. Read for free now.

After the latest results, the consensus from Eni's 20 analysts is for revenues of €79.3b in 2025, which would reflect an uncomfortable 13% decline in revenue compared to the last year of performance. Statutory earnings per share are predicted to jump 74% to €1.45. Yet prior to the latest earnings, the analysts had been anticipated revenues of €84.6b and earnings per share (EPS) of €1.51 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

See our latest analysis for Eni

The analysts made no major changes to their price target of €15.09, suggesting the downgrades are not expected to have a long-term impact on Eni's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Eni analyst has a price target of €18.00 per share, while the most pessimistic values it at €11.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Eni shareholders.

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 revenue is expected to reverse, with a forecast 17% annualised decline to the end of 2025. 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 0.4% annually for the foreseeable future. So it's pretty clear that Eni's revenues are expected to shrink faster than the wider 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. Unfortunately they also cut their revenue estimates for next year. Forecasts imply the business' revenue is expected to perform worse than the wider industry. That said, earnings per share are more important for creating value for shareholders. 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 in mind, we wouldn't be too quick to come to a conclusion on Eni. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Eni going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Eni has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.