Indra Sistemas, S.A. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Investors in Indra Sistemas, S.A. (BME:IDR) had a good week, as its shares rose 8.9% to close at €53.36 following the release of its second-quarter results. It looks like a credible result overall - although revenues of €1.8b were what the analysts expected, Indra Sistemas surprised by delivering a (statutory) profit of €0.82 per share, an impressive 29% above what was forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the 15 analysts covering Indra Sistemas are now predicting revenues of €7.07b in 2026. If met, this would reflect a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 9.7% to €2.76. Yet prior to the latest earnings, the analysts had been anticipated revenues of €6.84b and earnings per share (EPS) of €2.63 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
See our latest analysis for Indra Sistemas
Despite these upgrades,the analysts have not made any major changes to their price target of €66.62, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Indra Sistemas at €80.00 per share, while the most bearish prices it at €50.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Indra Sistemas' growth to accelerate, with the forecast 24% annualised growth to the end of 2026 ranking favourably alongside historical growth of 12% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Indra Sistemas to grow faster 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 Indra Sistemas' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at €66.62, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Indra Sistemas. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Indra Sistemas going out to 2028, and you can see them free on our platform here..
You still need to take note of risks, for example - Indra Sistemas has 1 warning sign we think you should be aware of.
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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.