Earnings Beat: Galp Energia, SGPS, S.A. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Galp Energia, SGPS, S.A. (ELI:GALP) just released its quarterly report and things are looking bullish. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 15% higher than the analysts had forecast, at €5.7b, while EPS were €0.47 beating analyst models by 62%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Galp Energia SGPS

Taking into account the latest results, Galp Energia SGPS' 15 analysts currently expect revenues in 2024 to be €21.8b, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €21.4b and earnings per share (EPS) of €1.25 in 2024. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

There's been no real change to the consensus price target of €22.23, with Galp Energia SGPS seemingly executing in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Galp Energia SGPS, with the most bullish analyst valuing it at €28.00 and the most bearish at €18.40 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 Galp Energia SGPS' revenue growth is expected to slow, with the forecast 0.1% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 1.0% per year. So it's clear that despite the slowdown in growth, Galp Energia SGPS is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that Galp Energia SGPS' revenue is expected to perform better than the wider industry. 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.

At least one of Galp Energia SGPS' 15 analysts has provided estimates out to 2026, which can be seen for free on our platform here.

It is also worth noting that we have found 1 warning sign for Galp Energia SGPS that you need to take into consideration.

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.

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