Yahoo Finance Some Analysts Just Cut Their EnLink Midstream, LLC (NYSE:ENLC) Estimates
Today is shaping up negative for EnLink Midstream, LLC (NYSE:ENLC) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.
Following the downgrade, the latest consensus from EnLink Midstream's four analysts is for revenues of US$7.4b in 2024, which would reflect a reasonable 7.5% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 31% to US$0.60. Previously, the analysts had been modelling revenues of US$8.4b and earnings per share (EPS) of US$0.63 in 2024. Indeed, we can see that analyst sentiment has declined measurably after the new consensus came out, with a measurable cut to revenue estimates and a minor downgrade to EPS estimates to boot.
View our latest analysis for EnLink Midstream
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the EnLink Midstream's past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 7.5% growth on an annualised basis. That is in line with its 6.3% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 1.7% annually. So although EnLink Midstream is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on EnLink Midstream after today.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple EnLink Midstream analysts - going out to 2025, and you can see them 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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