Naturgy Energy Group, S.A. (BME:NTGY) shareholders are probably feeling a little disappointed, since its shares fell 2.9% to €29.66 in the week after its latest quarterly results. The result was fairly weak overall, with revenues of €5.3b being 5.1% less than what the analysts had been modelling. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, Naturgy Energy Group's 16 analysts currently expect revenues in 2027 to be €20.3b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 6.0% to €2.14 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €20.2b and earnings per share (EPS) of €2.09 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
View our latest analysis for Naturgy Energy Group
There's been no major changes to the consensus price target of €31.22, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Naturgy Energy Group analyst has a price target of €35.00 per share, while the most pessimistic values it at €24.30. 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.
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. 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, Naturgy Energy Group's top line has shrunk approximately 8.2% annually over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 0.6% annually. Although Naturgy Energy Group's revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Naturgy Energy Group's earnings potential next year. 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Naturgy Energy Group going out to 2028, and you can see them free on our platform here..
It is also worth noting that we have found 3 warning signs for Naturgy Energy Group (1 makes us a bit uncomfortable!) that you need to take into consideration.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.