Avangrid, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Avangrid, Inc. (NYSE:AGR) came out with its first-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at US$2.4b, statutory earnings beat expectations by a notable 41%, coming in at US$0.91 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Avangrid after the latest results.

See our latest analysis for Avangrid

Following the latest results, Avangrid's eight analysts are now forecasting revenues of US$8.48b in 2024. This would be a credible 2.6% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$2.26, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$8.52b and earnings per share (EPS) of US$2.26 in 2024. 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.

There were no changes to revenue or earnings estimates or the price target of US$35.78, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Avangrid, with the most bullish analyst valuing it at US$45.00 and the most bearish at US$32.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Avangrid shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Avangrid's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Avangrid's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.5% growth on an annualised basis. This is compared to a historical growth rate of 6.7% over the past five years. Compare this to the 34 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.7% per year. Factoring in the forecast slowdown in growth, it looks like Avangrid is forecast to grow at about the same rate as 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$35.78, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Avangrid. Long-term earnings power is much more important than next year's profits. We have forecasts for Avangrid going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Avangrid you should be aware of, and 1 of them is a bit concerning.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.