Xcel Energy Inc. Just Missed Revenue By 7.2%: Here's What Analysts Think Will Happen Next

Xcel Energy Inc. (NASDAQ:XEL) just released its latest quarterly report and things are not looking great. Xcel Energy missed analyst forecasts, with revenues of US$3.6b and statutory earnings per share (EPS) of US$1.21, falling short by 7.2% and 4.6% respectively. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Xcel Energy after the latest results.

See our latest analysis for Xcel Energy

Taking into account the latest results, the consensus forecast from Xcel Energy's 13 analysts is for revenues of US$15.5b in 2025. This reflects a notable 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 17% to US$3.82. Before this earnings report, the analysts had been forecasting revenues of US$15.5b and earnings per share (EPS) of US$3.83 in 2025. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$70.14. 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. Currently, the most bullish analyst values Xcel Energy at US$78.00 per share, while the most bearish prices it at US$61.00. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Xcel Energy's rate of growth is expected to accelerate meaningfully, with the forecast 10.0% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 5.8% 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 4.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Xcel Energy to grow 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. Happily, there were no major changes to revenue forecasts, with the business still expected 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.

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. We have forecasts for Xcel Energy going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for Xcel Energy (1 doesn't sit too well with us!) that we have uncovered.

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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.