United Utilities Group PLC (LON:UU.) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

As you might know, United Utilities Group PLC (LON:UU.) recently reported its annual numbers. It looks like the results were a bit of a negative overall. While revenues of UK£2.1b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.9% to hit UK£0.39 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on United Utilities Group after the latest results.

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Taking into account the latest results, the most recent consensus for United Utilities Group from twelve analysts is for revenues of UK£2.56b in 2026. If met, it would imply a solid 20% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 107% to UK£0.80. In the lead-up to this report, the analysts had been modelling revenues of UK£2.56b and earnings per share (EPS) of UK£0.79 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for United Utilities Group

There's been no major changes to the consensus price target of UK£11.87, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values United Utilities Group at UK£13.00 per share, while the most bearish prices it at UK£10.40. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that United Utilities Group's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 2.6% p.a. 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 4.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect United Utilities Group to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards United Utilities Group following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for United Utilities Group going out to 2028, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for United Utilities Group that 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.