What You Need To Know About The ENEA S.A. (WSE:ENA) Analyst Downgrade Today

The analysts covering ENEA S.A. (WSE:ENA) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the consensus from three analysts covering ENEA is for revenues of zł17b in 2022, implying a substantial 22% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing zł23b of revenue in 2022. It looks like forecasts have become a fair bit less optimistic on ENEA, given the pretty serious reduction to revenue estimates.

View our latest analysis for ENEA

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 22% by the end of 2022. This indicates a significant reduction from annual growth of 14% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 0.8% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - ENEA is expected to lag the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for ENEA this year. They're also anticipating slower revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of ENEA going forwards.

Looking to learn more? At least one of ENEA's three analysts has provided estimates out to 2024, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.