Industry Analysts Just Upgraded Their EnLink Midstream, LLC (NYSE:ENLC) Revenue Forecasts By 13%

EnLink Midstream, LLC (NYSE:ENLC) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

Following the upgrade, the current consensus from EnLink Midstream's four analysts is for revenues of US$8.3b in 2024 which - if met - would reflect a substantial 21% increase on its sales over the past 12 months. Per-share earnings are expected to leap 28% to US$0.58. Previously, the analysts had been modelling revenues of US$7.4b and earnings per share (EPS) of US$0.59 in 2024. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

Check out our latest analysis for EnLink Midstream

It may not be a surprise to see that the analysts have reconfirmed their price target of US$14.58, implying that the uplift in sales is not expected to greatly contribute to EnLink Midstream's valuation in the near term.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting EnLink Midstream's growth to accelerate, with the forecast 21% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect EnLink Midstream to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at EnLink Midstream.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential flags with EnLink Midstream, including recent substantial insider selling. You can learn more, and discover the 2 other flags we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.