TC Energy Corporation Just Beat Revenue By 7.4%: Here's What Analysts Think Will Happen Next

Investors in TC Energy Corporation (TSE:TRP) had a good week, as its shares rose 2.2% to close at CA$59.29 following the release of its second-quarter results. It was a workmanlike result, with revenues of CA$4.1b coming in 7.4% ahead of expectations, and statutory earnings per share of CA$0.93, in line with analyst appraisals. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for TC Energy

Taking into account the latest results, the current consensus, from the twelve analysts covering TC Energy, is for revenues of CA$16.6b in 2024. This implies a perceptible 5.1% reduction in TC Energy's revenue over the past 12 months. Statutory earnings per share are predicted to surge 28% to CA$4.24. In the lead-up to this report, the analysts had been modelling revenues of CA$16.4b and earnings per share (EPS) of CA$4.24 in 2024. 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 CA$58.82, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on TC Energy, with the most bullish analyst valuing it at CA$66.00 and the most bearish at CA$47.00 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.

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. We would highlight that revenue is expected to reverse, with a forecast 10.0% annualised decline to the end of 2024. That is a notable change from historical growth of 4.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.5% annually for the foreseeable future. It's pretty clear that TC Energy's revenues are expected to perform substantially worse 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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that TC Energy's revenue is expected to perform worse 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. We have forecasts for TC Energy going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with TC Energy (including 1 which is potentially serious) .

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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.

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