REN - Redes Energéticas Nacionais, SGPS, S.A. (ELI:RENE) Interim Results: Here's What Analysts Are Forecasting For This Year

REN - Redes Energéticas Nacionais, SGPS, S.A. (ELI:RENE) shareholders are probably feeling a little disappointed, since its shares fell 3.8% to €3.06 in the week after its latest interim results. Results look mixed - while revenue fell marginally short of analyst estimates at €495m, statutory earnings were in line with expectations, at €0.23 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on REN - Redes Energéticas Nacionais SGPS after the latest results.

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Following last week's earnings report, REN - Redes Energéticas Nacionais SGPS' eight analysts are forecasting 2025 revenues to be €1.04b, approximately in line with the last 12 months. Statutory earnings per share are expected to crater 21% to €0.20 in the same period. Before this earnings report, the analysts had been forecasting revenues of €1.03b and earnings per share (EPS) of €0.20 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for REN - Redes Energéticas Nacionais SGPS

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €3.03. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on REN - Redes Energéticas Nacionais SGPS, with the most bullish analyst valuing it at €3.50 and the most bearish at €2.40 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that REN - Redes Energéticas Nacionais SGPS' revenue growth is expected to slow, with the forecast 2.8% annualised growth rate until the end of 2025 being well below the historical 7.4% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.5% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than REN - Redes Energéticas Nacionais SGPS.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple REN - Redes Energéticas Nacionais SGPS analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for REN - Redes Energéticas Nacionais SGPS (1 is potentially serious!) that you need to be mindful of.

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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.