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 revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.
Following the upgrade, the most recent consensus for EnLink Midstream from its four analysts is for revenues of US$8.4b in 2024 which, if met, would be a sizeable 22% increase on its sales over the past 12 months. Statutory earnings per share are presumed to shoot up 28% to US$0.59. Previously, the analysts had been modelling 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.
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. The analysts are definitely expecting EnLink Midstream's growth to accelerate, with the forecast 22% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.3% per annum 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. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect EnLink Midstream to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at EnLink Midstream.
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential risks with EnLink Midstream, including recent substantial insider selling. You can learn more, and discover the 2 other risks we've identified, for free on our platform here.
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