Here's What Analysts Are Forecasting For DT Midstream, Inc. (NYSE:DTM) Following Its Earnings Miss

It's shaping up to be a tough period for DT Midstream, Inc. (NYSE:DTM), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at US$220m, statutory earnings missed forecasts by 10%, coming in at just US$0.84 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for DT Midstream

Following last week's earnings report, DT Midstream's four analysts are forecasting 2023 revenues to be US$939.0m, approximately in line with the last 12 months. Statutory earnings per share are forecast to reduce 2.4% to US$3.73 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$986.6m and earnings per share (EPS) of US$3.78 in 2023. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The average price target was steady at US$57.13even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values DT Midstream at US$60.00 per share, while the most bearish prices it at US$54.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting DT Midstream is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that DT Midstream's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 2.0% growth on an annualised basis. This is compared to a historical growth rate of 7.8% over the past year. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 4.0% annually. So it's clear that despite the slowdown in growth, DT Midstream is still expected to grow meaningfully faster than 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. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider industry. Even so, earnings are more important to the intrinsic value of the business. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for DT Midstream going out to 2025, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for DT Midstream 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.