Earnings Report: Black Hills Corporation Missed Revenue Estimates By 8.0%

As you might know, Black Hills Corporation (NYSE:BKH) recently reported its annual numbers. Revenues came in 8.0% below expectations, at US$2.1b. Statutory earnings per share were relatively better off, with a per-share profit of US$3.91 being roughly in line with analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Black Hills after the latest results.

View our latest analysis for Black Hills

Following the latest results, Black Hills' three analysts are now forecasting revenues of US$2.42b in 2025. This would be a decent 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 7.9% to US$4.12. Before this earnings report, the analysts had been forecasting revenues of US$2.41b and earnings per share (EPS) of US$4.11 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$64.40, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Black Hills analyst has a price target of US$76.00 per share, while the most pessimistic values it at US$55.00. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Black Hills' past performance and to peers in the same industry. The analysts are definitely expecting Black Hills' growth to accelerate, with the forecast 14% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Black Hills 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. 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. We have forecasts for Black Hills going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Black Hills (of which 1 is a bit unpleasant!) you should know about.

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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.