E.ON stock: Forecast exceeded

Last Updated: 2. Februar 2024By

The E.ON stock has also started the new 2024 trading year quite well after the end-of-year rally. The stock continues to trade around the multi-year high of 12.50 euros (as of February 2, 2024, around 10 am). Most recently, the energy provider presented strong preliminary figures for the past fiscal year.

E.ON surprises with profit For fiscal year 2023, the DAX company had previously forecasted an EBITDA of 8.8 billion euros and an adjusted net profit of between 2.7 and 2.9 billion euros. According to preliminary figures, the EBITDA now stands at 9.4 billion euros. The adjusted net profit, excluding special effects, was reported by E.ON at 3.1 billion euros. Even analysts had only expected 2.9 billion euros.

The numbers from E.ON are also strong considering the enormous investment costs for network expansion and the energy transition. The details of fiscal year 2023 and, above all, how the company is looking towards 2024, will only be revealed in about 6 weeks. Investors should therefore keep an eye on March 13.

E.ON stock: long-term potential After the preliminary figures for 2023, the E.ON stock has remained relatively unchanged and analysts have not changed their price targets. While the exceeded profit was a positive surprise, the outlook for the future is likely to have a greater impact on the stock’s performance.

In the medium and long term, the E.ON stock remains interesting. This is because there is still much to be done in the areas of network infrastructure and expansion in the coming years. It is also important for investors to note that despite the massive investments (around 6.4 billion euros in 2023), E.ON is generating substantial profits and also pays out a decent dividend of around 4 percent.

Source: https://aktienscreener.com/