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The investors in Innergex Renewable Energy Inc.'s (TSE:INE) will be rubbing their hands together with glee today, after the share price leapt 20% to CA$8.95 in the week following its yearly results. It looks like a credible result overall - although revenues of CA$1.0b were what the analysts expected, Innergex Renewable Energy surprised by delivering a statutory profit of CA$0.05 per share, instead of the previously forecast loss. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Innergex Renewable Energy
After the latest results, the seven analysts covering Innergex Renewable Energy are now predicting revenues of CA$1.21b in 2025. If met, this would reflect a solid 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 69% to CA$0.13. Before this earnings report, the analysts had been forecasting revenues of CA$1.21b and earnings per share (EPS) of CA$0.062 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the massive increase in earnings per share expectations following these results.
The consensus price target was unchanged at CA$11.35, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Innergex Renewable Energy at CA$16.00 per share, while the most bearish prices it at CA$9.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.9% annually. So although Innergex Renewable Energy is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.