Analysts Just Slashed Their PGE Polska Grupa Energetyczna S.A. (WSE:PGE) EPS Numbers

Today is shaping up negative for PGE Polska Grupa Energetyczna S.A. (WSE:PGE) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

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Following the downgrade, the latest consensus from PGE Polska Grupa Energetyczna's five analysts is for revenues of zł70b in 2026, which would reflect a decent 10% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to drop 17% to zł2.84 in the same period. Before this latest update, the analysts had been forecasting revenues of zł101b and earnings per share (EPS) of zł3.34 in 2026. Indeed, we can see that the analysts are a lot more bearish about PGE Polska Grupa Energetyczna's prospects, administering a sizeable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for PGE Polska Grupa Energetyczna

The average price target climbed 7.7% to zł13.11 despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

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 PGE Polska Grupa Energetyczna's growth to accelerate, with the forecast 22% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect PGE Polska Grupa Energetyczna to grow faster than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for PGE Polska Grupa Energetyczna. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. The increasing price target is not intuitively what we would expect to see, given these downgrades, and we'd suggest shareholders revisit their investment thesis before making a decision.

That said, the analysts might have good reason to be negative on PGE Polska Grupa Energetyczna, given concerns around earnings quality. For more information, you can click here to discover this and the 1 other risk we've identified.

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