Public Joint Stock Company Inter RAO UES (MCX:IRAO) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

As you might know, Public Joint Stock Company Inter RAO UES (MCX:IRAO) recently reported its full-year numbers. Inter RAO UES reported ₽996b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₽1.02 beat expectations, being 3.1% higher than what the analysts expected. 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.

See our latest analysis for Inter RAO UES

Taking into account the latest results, the current consensus from Inter RAO UES' five analysts is for revenues of ₽1.05t in 2021, which would reflect a reasonable 5.5% increase on its sales over the past 12 months. Per-share earnings are expected to increase 3.4% to ₽1.05. In the lead-up to this report, the analysts had been modelling revenues of ₽1.05t and earnings per share (EPS) of ₽1.11 in 2021. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₽7.82, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Inter RAO UES, with the most bullish analyst valuing it at ₽13.00 and the most bearish at ₽5.65 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The analysts are definitely expecting Inter RAO UES' growth to accelerate, with the forecast 5.5% annualised growth to the end of 2021 ranking favourably alongside historical growth of 4.5% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 5.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Inter RAO UES is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Inter RAO UES. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₽7.82, 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 Inter RAO UES going out to 2025, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Inter RAO UES (at least 1 which is significant) , and understanding these should be part of your investment process.

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This article by Simply Wall St is general in nature. 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.
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