Dubai Electricity and Water Authority (PJSC) (DFM:DEWA) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

Dubai Electricity and Water Authority (PJSC) (DFM:DEWA) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results were roughly in line with estimates, with revenues of د.إ9.9b and statutory earnings per share of د.إ0.057. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Dubai Electricity and Water Authority (PJSC)

Taking into account the latest results, the current consensus from Dubai Electricity and Water Authority (PJSC)'s eight analysts is for revenues of د.إ32.3b in 2025. This would reflect a satisfactory 5.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 7.8% to د.إ0.15. In the lead-up to this report, the analysts had been modelling revenues of د.إ32.4b and earnings per share (EPS) of د.إ0.15 in 2025. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at د.إ2.92. 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. There are some variant perceptions on Dubai Electricity and Water Authority (PJSC), with the most bullish analyst valuing it at د.إ3.50 and the most bearish at د.إ2.43 per share. 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 pretty clear that there is an expectation that Dubai Electricity and Water Authority (PJSC)'s revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.6% growth on an annualised basis. This is compared to a historical growth rate of 7.3% over the past five years. Compare this to the 13 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.3% per year. So it's pretty clear that, while Dubai Electricity and Water Authority (PJSC)'s revenue growth is expected to slow, it's expected to grow roughly in line with the 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 real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at د.إ2.92, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Dubai Electricity and Water Authority (PJSC). Long-term earnings power is much more important than next year's profits. We have forecasts for Dubai Electricity and Water Authority (PJSC) going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Dubai Electricity and Water Authority (PJSC) has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.