The Dubai Electricity and Water Authority (PJSC) (DFM:DEWA) First-Quarter Results Are Out And Analysts Have Published New Forecasts

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. Revenues came in 2.1% below expectations, at د.إ6.0b. Statutory earnings per share were relatively better off, with a per-share profit of د.إ0.14 being roughly in line with analyst estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the eight analysts covering Dubai Electricity and Water Authority (PJSC) are now predicting revenues of د.إ32.3b in 2025. If met, this would reflect a reasonable 3.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 9.0% to د.إ0.15. In the lead-up to this report, the analysts had been modelling revenues of د.إ32.5b 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.

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

There were no changes to revenue or earnings estimates or the price target of د.إ2.94, suggesting that the company has met expectations in its recent result. 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.إ3.30 and the most bearish at د.إ2.58 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Dubai Electricity and Water Authority (PJSC)'s past performance and to peers in the same industry. We would highlight that Dubai Electricity and Water Authority (PJSC)'s revenue growth is expected to slow, with the forecast 5.2% annualised growth rate until the end of 2025 being well below the historical 7.5% p.a. growth over the last three years. Compare this to the 13 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.5% per year. Factoring in the forecast slowdown in growth, it looks like Dubai Electricity and Water Authority (PJSC) is forecast to grow at about the same rate as the wider 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at د.إ2.94, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Dubai Electricity and Water Authority (PJSC) 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.