Earnings Miss: Xcel Energy Inc. Missed EPS By 34% And Analysts Are Revising Their Forecasts

The quarterly results for Xcel Energy Inc. (NASDAQ:XEL) were released last week, making it a good time to revisit its performance. It looks like a pretty bad result, all things considered. Although revenues of US$3.9b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 34% to hit US$0.88 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus from Xcel Energy's 15 analysts is for revenues of US$16.0b in 2026. This would reflect a notable 12% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 27% to US$4.11. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$16.0b and earnings per share (EPS) of US$4.13 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Xcel Energy

There were no changes to revenue or earnings estimates or the price target of US$88.24, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on Xcel Energy, with the most bullish analyst valuing it at US$97.00 and the most bearish at US$65.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Xcel Energy's rate of growth is expected to accelerate meaningfully, with the forecast 9.7% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 2.8% 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 7.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Xcel Energy is expected to grow much faster than its 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. 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. The consensus price target held steady at US$88.24, with the latest estimates not enough to have an impact on their price targets.

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 Xcel Energy 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 Xcel Energy (including 1 which is a bit concerning) .

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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.