Constellation Energy Corporation Just Missed EPS By 82%: Here's What Analysts Think Will Happen Next

Shareholders of Constellation Energy Corporation (NASDAQ:CEG) will be pleased this week, given that the stock price is up 12% to US$271 following its latest first-quarter results. Revenue came in at US$6.8b, beating expectations by a remarkable 25%, while statutory earnings per share (EPS) were US$0.38, missing estimates by an equally remarkable 82%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Our free stock report includes 3 warning signs investors should be aware of before investing in Constellation Energy. Read for free now.

After the latest results, the consensus from Constellation Energy's eleven analysts is for revenues of US$23.2b in 2025, which would reflect a noticeable 4.0% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to decrease 4.8% to US$9.07 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$23.0b and earnings per share (EPS) of US$9.45 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for Constellation Energy

The consensus price target held steady at US$289, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Constellation Energy, with the most bullish analyst valuing it at US$385 and the most bearish at US$184 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Constellation Energy's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 5.3% annualised decline to the end of 2025. That is a notable change from historical growth of 7.8% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.7% per year. It's pretty clear that Constellation Energy's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Constellation Energy. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Constellation 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Constellation Energy. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Constellation Energy going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Constellation Energy (2 are a bit concerning) 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.