What Does The Future Hold For EnLink Midstream, LLC (NYSE:ENLC)? These Analysts Have Been Cutting Their Estimates

One thing we could say about the analysts on EnLink Midstream, LLC (NYSE:ENLC) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, the four analysts covering EnLink Midstream provided consensus estimates of US$6.9b revenue in 2023, which would reflect a considerable 13% decline on its sales over the past 12 months. Statutory earnings per share are supposed to tumble 37% to US$0.49 in the same period. Before this latest update, the analysts had been forecasting revenues of US$8.4b and earnings per share (EPS) of US$0.53 in 2023. It looks like analyst sentiment has fallen somewhat in this update, with a measurable cut to revenue estimates and a small dip in earnings per share numbers as well.

Check out our latest analysis for EnLink Midstream

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 25% by the end of 2023. This indicates a significant reduction from annual growth of 5.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 2.5% annually for the foreseeable future. The forecasts do look bearish for EnLink Midstream, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately they also downgraded their revenue estimates, and our aggregation of analyst estimates suggests that EnLink Midstream revenue is expected to perform worse than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of EnLink Midstream going forwards.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with EnLink Midstream, including recent substantial insider selling. Learn more, and discover the 2 other risks 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.