Stock Analysis

Analysts Just Made A Major Revision To Their DTE Energy Company (NYSE:DTE) Revenue Forecasts

NYSE:DTE
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The analysts covering DTE Energy Company (NYSE:DTE) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following this downgrade, DTE Energy's twelve analysts are forecasting 2023 revenues to be US$16b, approximately in line with the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$19b in 2023. The consensus view seems to have become more pessimistic on DTE Energy, noting the substantial drop in revenue estimates in this update.

See our latest analysis for DTE Energy

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NYSE:DTE Earnings and Revenue Growth August 11th 2023

There was no particular change to the consensus price target of US$126, with DTE Energy's latest outlook seemingly not enough to result in a change of valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 0.4% by the end of 2023. This indicates a significant reduction from annual growth of 7.4% 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 1.5% per year. It's pretty clear that DTE Energy's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on DTE Energy after today.

That said, the analysts might have good reason to be negative on DTE Energy, given dilutive stock issuance over the past year. For more information, you can click here to discover this and the 2 other risks we've identified.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

Valuation is complex, but we're helping make it simple.

Find out whether DTE Energy is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.