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Eversource Energy (NYSE:ES) just released its latest third-quarter results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.2% to hit US$2.3b. Statutory earnings per share (EPS) came in at US$1.01, some 2.8% above whatthe analysts had expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Eversource Energy's ten analysts is for revenues of US$9.19b in 2021, which would reflect a satisfactory 5.4% improvement in sales compared to the last 12 months. Per-share earnings are expected to rise 9.6% to US$3.88. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$9.19b and earnings per share (EPS) of US$3.88 in 2021. 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.
The analysts reconfirmed their price target of US$91.60, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Eversource Energy analyst has a price target of US$110 per share, while the most pessimistic values it at US$65.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. The analysts are definitely expecting Eversource Energy's growth to accelerate, with the forecast 5.4% growth ranking favourably alongside historical growth of 2.9% 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 3.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Eversource Energy is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Eversource Energy going out to 2024, and you can see them free on our platform here..
It is also worth noting that we have found 3 warning signs for Eversource Energy (1 doesn't sit too well with us!) that you need to take into consideration.
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.
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