Engie SA (EPA:ENGI) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?
Investors in Engie SA (EPA:ENGI) had a good week, as its shares rose 2.7% to close at €26.87 following the release of its quarterly results. It was a workmanlike result, with revenues of €16b coming in 4.8% ahead of expectations, and statutory earnings per share of €1.51, in line with analyst appraisals. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the most recent consensus for Engie from 15 analysts is for revenues of €76.8b in 2026. If met, it would imply a solid 8.9% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 14% to €1.91. Yet prior to the latest earnings, the analysts had been anticipated revenues of €77.0b and earnings per share (EPS) of €1.91 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Engie
It will come as no surprise then, to learn that the consensus price target is largely unchanged at €30.81. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Engie analyst has a price target of €34.00 per share, while the most pessimistic values it at €24.50. 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. The analysts are definitely expecting Engie's growth to accelerate, with the forecast 18% annualised growth to the end of 2026 ranking favourably alongside historical growth of 1.0% 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 6.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Engie to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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 Engie going out to 2028, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 2 warning signs for Engie (of which 1 makes us a bit uncomfortable!) you should know about.
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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.