Here's What Analysts Are Forecasting For DT Midstream, Inc. (NYSE:DTM) After Its Second-Quarter Results

DT Midstream, Inc. (NYSE:DTM) just released its latest second-quarter results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 3.7% to hit US$309m. Statutory earnings per share (EPS) came in at US$1.04, some 3.4% above whatthe analysts had expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on DT Midstream after the latest results.

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Following the latest results, DT Midstream's eight analysts are now forecasting revenues of US$1.26b in 2025. This would be a meaningful 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 16% to US$4.30. Before this earnings report, the analysts had been forecasting revenues of US$1.23b and earnings per share (EPS) of US$4.32 in 2025. There doesn't appear to have been a major change in sentiment following the results, other than the small increase to revenue estimates.

See our latest analysis for DT Midstream

Even though revenue forecasts increased, there was no change to the consensus price target of US$109, suggesting the analysts are focused on earnings as the driver of value creation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values DT Midstream at US$118 per share, while the most bearish prices it at US$95.00. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the DT Midstream's past performance and to peers in the same industry. It's clear from the latest estimates that DT Midstream's rate of growth is expected to accelerate meaningfully, with the forecast 29% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.0% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect DT Midstream to grow faster 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. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at US$109, with the latest estimates not enough to have an impact on their price targets.

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 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - DT Midstream has 1 warning sign we think 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.