Spanish companies International Consolidated Airlines (ES:IAG) and Endesa SA (ES:ELE) will announce their 2022 full-year results on Friday, February 24.
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With the rebound in business and leisure travel, analysts believe that IAG’s operations will continue to recover, pushing the profits higher. However, the stock price doesn’t offer any significant upside at the moment, and analysts await the outlook update in the upcoming results.
The earnings of energy company Endesa are expected to fall over the next two years as the government implements a windfall tax. But, analysts expect the company to meet its guidance numbers in 2022 results.
The TipRanks Earnings Calendar for the Spanish market provides this information on upcoming earnings. With this tool, investors can have systematic and updated data in their hands regarding the companies’ earnings.
Let’s have a look at them in detail.
International Consolidated Airlines Group, S.A.
IAG is a holding company that combines leading airlines from Ireland, Spain, and the UK.
Just like the airlines, the company’s stock is also on the recovery path and has gained more than 40% in the last six months. Overall, the stock has fallen by almost 60% in the last three years.
IAG will release its full-year financial results for 2022 on February 24. The consensus EPS forecast is still at negative €0.01 per share for Q4 but has improved a lot as compared to negative EPS €0.05 per share in the last year’s quarter. The expected sales for the fourth quarter are €6.2 billion, showing the recovery in passenger volumes across its airlines.
Investors have high expectations from the Q4 numbers, as the passenger capacity has increased and is expected to be around 87% of pre-pandemic levels. The expected revenue for 2022 is €24.38 billion, which is a significant improvement over €8.45 billion in 2021. The operating income forecast is €1.2 billion for the year.
What is the Prediction for IAG Shares?
Analysts are looking forward to further updates on the company’s profit margins and 2023 outlook, which will impact share price movements. As of now, the stock’s potential upside remains limited.
According to TipRanks, IAG stock has a Hold rating, based on four Buy, seven Hold, and one Sell recommendations.
The average target price is €1.94, which shows a change of 8.16% on the current price.
Endesa SA
Endesa is the largest electricity company in Spain, with a customer base of around 10 million.
The company will post its 2022 annual results on February 24, before the market opens. The forecasted EPS of €0.8 per share for the fourth quarter shows a great improvement over the negative EPS of €0.03 in the same quarter a year ago.
The windfall tax introduced by the Spanish government on energy companies has impacted the earnings forecast for Endesa. The company is expecting to deliver its earnings in the range of €2.2 to €2.3 billion in 2022. But it has reduced its earnings guidance to €1.5 billion and €1.8 billion for 2023 and 2024, respectively.
In terms of share price growth, analysts have mixed opinions. Among these, Kepler Capital analyst Jose Porta has the highest target price of €26.0, implying an upside of almost 40%.
Endesa Share Price Forecast
According to TipRanks’ analyst consensus, ELE stock has a Moderate Buy rating.
The average share price forecast is €21.20, which is 14% higher than the current price.
Ending Thoughts
IAG stock has been off to a great start in 2023 and has gained 26% YTD. While analysts expect higher revenues and profits in the full-year results for 2022, the stock price forecast has limited upside potential at the moment.
Endesa has been impacted by the newly introduced windfall tax by the Spanish government. While analysts believe this will not hurt earnings in 2022, the forecasts have been reduced for the next two years.
