Earnings Update: Greenvolt - Energias Renováveis, S.A. (ELI:GVOLT) Just Reported Its Full-Year Results And Analysts Are Updating Their Forecasts

Shareholders might have noticed that Greenvolt - Energias Renováveis, S.A. (ELI:GVOLT) filed its full-year result this time last week. The early response was not positive, with shares down 3.7% to €5.97 in the past week. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 8.0%to hit €142m. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Greenvolt - Energias Renováveis after the latest results.

View our latest analysis for Greenvolt - Energias Renováveis

After the latest results, the five analysts covering Greenvolt - Energias Renováveis are now predicting revenues of €181.5m in 2022. If met, this would reflect a sizeable 28% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to leap 278% to €0.25. Yet prior to the latest earnings, the analysts had been anticipated revenues of €183.4m and earnings per share (EPS) of €0.23 in 2022. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at €7.00, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Greenvolt - Energias Renováveis, with the most bullish analyst valuing it at €7.50 and the most bearish at €6.40 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Greenvolt - Energias Renováveis'historical trends, as the 28% annualised revenue growth to the end of 2022 is roughly in line with the 27% annual revenue growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.4% annually. So although Greenvolt - Energias Renováveis is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Greenvolt - Energias Renováveis following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €7.00, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Greenvolt - Energias Renováveis going out to 2024, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for Greenvolt - Energias Renováveis (1 is a bit concerning!) that we have uncovered.

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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.