DTE Energy Company Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

DTE Energy Company (NYSE:DTE) just released its second-quarter report and things are looking bullish. DTE Energy delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting US$2.9b-17% above indicated-andUS$1.55-28% above forecasts- 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for DTE Energy

Taking into account the latest results, the most recent consensus for DTE Energy from eleven analysts is for revenues of US$12.7b in 2024. If met, it would imply a satisfactory 2.7% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be US$6.62, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$12.9b and earnings per share (EPS) of US$6.64 in 2024. 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.

There were no changes to revenue or earnings estimates or the price target of US$124, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic DTE Energy analyst has a price target of US$133 per share, while the most pessimistic values it at US$111. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. The analysts are definitely expecting DTE Energy's growth to accelerate, with the forecast 5.6% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.5% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 5.2% per year. DTE Energy is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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$124, 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 DTE Energy. Long-term earnings power is much more important than next year's profits. We have forecasts for DTE Energy going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for DTE Energy (of which 1 is a bit concerning!) 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.

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