Results: DTE Energy Company Exceeded Expectations And The Consensus Has Updated Its Estimates
DTE Energy Company (NYSE:DTE) just released its quarterly report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.0% to hit US$3.3b. DTE Energy reported statutory earnings per share (EPS) US$2.46, which was a notable 17% above what the analysts had forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on DTE Energy after the latest results.
Check out our latest analysis for DTE Energy
Taking into account the latest results, the current consensus from DTE Energy's eleven analysts is for revenues of US$13.5b in 2021, which would reflect a meaningful 12% increase on its sales over the past 12 months. Statutory per-share earnings are expected to be US$7.09, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$13.5b and earnings per share (EPS) of US$7.10 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$135, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values DTE Energy at US$155 per share, while the most bearish prices it at US$120. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting DTE Energy is an easy business to forecast or the the analysts are all using similar assumptions.
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 DTE Energy's growth to accelerate, with the forecast 12% growth ranking favourably alongside historical growth of 5.0% 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 DTE Energy to grow faster than the wider 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. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are 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.
With that in mind, we wouldn't be too quick to come to a conclusion on DTE Energy. Long-term earnings power is much more important than next year's profits. We have forecasts for DTE Energy going out to 2024, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with DTE Energy (at least 1 which doesn't sit too well with us) , and understanding them should be part of your investment process.
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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