Endesa, S.A. (BME:ELE) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues were €6.4b, and Endesa came in a solid 18% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, Endesa's 22 analysts currently expect revenues in 2027 to be €22.6b, approximately in line with the last 12 months. Statutory per share are forecast to be €2.40, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €22.2b and earnings per share (EPS) of €2.38 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for Endesa
It will come as no surprise then, to learn that the consensus price target is largely unchanged at €36.69. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Endesa, with the most bullish analyst valuing it at €44.30 and the most bearish at €26.20 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2027. Historically, Endesa's top line has shrunk approximately 4.6% annually over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.9% per year. So it's pretty clear that, although revenues are improving, Endesa is still expected to grow slower than the industry.
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. The consensus price target held steady at €36.69, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Endesa going out to 2028, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Endesa that you should be aware of.
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