Redeia Corporación, S.A. (BME:RED) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates
Investors in Redeia Corporación, S.A. (BME:RED) had a good week, as its shares rose 4.0% to close at €15.42 following the release of its third-quarter results. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 5.9%to hit €444m. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from Redeia Corporación's 18 analysts is for revenues of €1.83b in 2027. This would reflect a satisfactory 4.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 2.9% to €0.97. Before this earnings report, the analysts had been forecasting revenues of €1.83b and earnings per share (EPS) of €0.96 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 Redeia Corporación
There were no changes to revenue or earnings estimates or the price target of €16.51, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Redeia Corporación analyst has a price target of €19.40 per share, while the most pessimistic values it at €13.50. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Redeia Corporación's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.5% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 5.1% a year 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 3.9% annually. So it looks like Redeia Corporación is expected to grow at about the same rate as the wider 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at €16.51, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Redeia Corporación going out to 2028, and you can see them free on our platform here..
Before you take the next step you should know about the 2 warning signs for Redeia Corporación (1 makes us a bit uncomfortable!) that we have uncovered.
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