Yahoo Finance Broker Revenue Forecasts For EnLink Midstream, LLC (NYSE:ENLC) Are Surging Higher
EnLink Midstream, LLC (NYSE:ENLC) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that EnLink Midstream will make substantially more sales than they'd previously expected.
Following the upgrade, the latest consensus from EnLink Midstream's four analysts is for revenues of US$8.4b in 2024, which would reflect a huge 22% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 28% to US$0.59. Before this latest update, the analysts had been forecasting revenues of US$7.4b and earnings per share (EPS) of US$0.59 in 2024. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.
Check out our latest analysis for EnLink Midstream
It may not be a surprise to see that the analysts have reconfirmed their price target of US$14.67, implying that the uplift in sales is not expected to greatly contribute to EnLink Midstream's valuation in the near term.
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. It's clear from the latest estimates that EnLink Midstream's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.3% p.a. 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 2.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that EnLink Midstream is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at EnLink Midstream.
Analysts are clearly in love with EnLink Midstream at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as recent substantial insider selling. You can learn more, and discover the 2 other warning signs we've identified, for free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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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.
