Revenue Beat: DT Midstream, Inc. Exceeded Revenue Forecasts By 6.3% And Analysts Are Updating Their Estimates

Investors in DT Midstream, Inc. (NYSE:DTM) had a good week, as its shares rose 2.0% to close at US$101 following the release of its quarterly results. DT Midstream beat revenue expectations by 6.3%, at US$303m. Statutory earnings per share (EPS) came in at US$1.06, some 3.0% short of analyst estimates. 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.

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After the latest results, the nine analysts covering DT Midstream are now predicting revenues of US$1.20b in 2025. If met, this would reflect a solid 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 23% to US$4.42. Before this earnings report, the analysts had been forecasting revenues of US$1.17b and earnings per share (EPS) of US$4.53 in 2025. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a solid to revenue, the consensus also made a small dip in its earnings per share forecasts.

View our latest analysis for DT Midstream

The consensus price target was unchanged at US$105, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on DT Midstream, with the most bullish analyst valuing it at US$115 and the most bearish at US$89.14 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that DT Midstream's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.9% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that DT Midstream is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for DT Midstream. Happily, they also upgraded their revenue estimates, and are forecasting them 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.

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..

Plus, you should also learn about the 2 warning signs we've spotted with DT Midstream .

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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.