Results: Dubai Electricity and Water Authority (PJSC) Exceeded Expectations And The Consensus Has Updated Its Estimates

Dubai Electricity and Water Authority (PJSC) (DFM:DEWA) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like a credible result overall - although revenues of د.إ10b were in line with what the analysts predicted, Dubai Electricity and Water Authority (PJSC) surprised by delivering a statutory profit of د.إ0.072 per share, a notable 13% above expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, Dubai Electricity and Water Authority (PJSC)'s nine analysts are now forecasting revenues of د.إ34.2b in 2026. This would be a reasonable 5.8% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be د.إ0.16, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of د.إ34.2b and earnings per share (EPS) of د.إ0.16 in 2026. 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.

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

The analysts reconfirmed their price target of د.إ3.09, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Dubai Electricity and Water Authority (PJSC), with the most bullish analyst valuing it at د.إ3.35 and the most bearish at د.إ2.70 per share. This is a very narrow spread of estimates, implying either that Dubai Electricity and Water Authority (PJSC) is an easy company to value, or - more likely - the analysts are relying heavily on some key 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. 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 2026 expected to display 4.6% growth on an annualised basis. This is compared to a historical growth rate of 7.7% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.6% annually. So it's pretty clear that, while Dubai Electricity and Water Authority (PJSC)'s revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at د.إ3.09, 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 estimates - from multiple Dubai Electricity and Water Authority (PJSC) analysts - going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Dubai Electricity and Water Authority (PJSC)'s balance sheet, and whether we think Dubai Electricity and Water Authority (PJSC) is carrying too much debt, for free on our platform here.

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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.