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DTE Energy Company Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Simply Wall St

As you might know, DTE Energy Company (NYSE:DTE) recently reported its second-quarter numbers. DTE Energy missed revenue estimates by 8.7%, with sales of US$2.6b, although statutory earnings per share (EPS) of US$1.44 beat expectations, coming in 8.1% ahead of analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for DTE Energy

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking into account the latest results, the most recent consensus for DTE Energy from eleven analysts is for revenues of US$14.0b in 2020 which, if met, would be a decent 18% increase on its sales over the past 12 months. Statutory earnings per share are predicted to increase 4.6% to US$6.63. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$13.4b and earnings per share (EPS) of US$6.63 in 2020. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$125, implying that the uplift in sales is not expected to greatly contribute to DTE Energy's valuation in the near term. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic DTE Energy analyst has a price target of US$155 per share, while the most pessimistic values it at US$104. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. It's clear from the latest estimates that DTE Energy's rate of growth is expected to accelerate meaningfully, with the forecast 18% revenue growth noticeably faster than its historical growth of 5.6%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.2% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that DTE Energy is expected to grow much faster than its 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$125, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple DTE Energy analysts - going out to 2024, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for DTE Energy (1 shouldn't be ignored!) that you need to be mindful of.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.