Enerflex Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
Investors in Enerflex Ltd. (TSE:EFX) had a good week, as its shares rose 3.6% to close at CA$33.05 following the release of its quarterly results. Revenues of US$616m fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of US$0.44 an impressive 34% ahead of estimates. 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.
Taking into account the latest results, the consensus forecast from Enerflex's ten analysts is for revenues of US$2.76b in 2027. This reflects a decent 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 224% to US$1.88. Before this earnings report, the analysts had been forecasting revenues of US$2.80b and earnings per share (EPS) of US$1.91 in 2027. 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.
See our latest analysis for Enerflex
The analysts reconfirmed their price target of CA$50.63, showing that the business is executing well and in line with expectations. 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 Enerflex at CA$57.00 per share, while the most bearish prices it at CA$44.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Enerflex's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2027 being well below the historical 20% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.9% per year. Even after the forecast slowdown in growth, it seems obvious that Enerflex is also expected 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. Happily, there were no major changes to revenue forecasts, with the business still 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Enerflex analysts - going out to 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for Enerflex you should be aware of.
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