Stock Analysis

Newsflash: DTE Energy Company (NYSE:DTE) Analysts Have Been Trimming Their Revenue Forecasts

NYSE:DTE
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The latest analyst coverage could presage a bad day for DTE Energy Company (NYSE:DTE), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the consensus from eleven analysts covering DTE Energy is for revenues of US$15b in 2023, implying a considerable 17% decline in sales compared to the last 12 months. Per-share earnings are expected to step up 14% to US$6.23. Before this latest update, the analysts had been forecasting revenues of US$17b and earnings per share (EPS) of US$6.21 in 2023. So there's been a clear change in analyst sentiment in the recent update, with the analysts making a substantial drop in revenues and reconfirming their earnings per share estimates.

View our latest analysis for DTE Energy

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NYSE:DTE Earnings and Revenue Growth May 4th 2023

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 22% by the end of 2023. This indicates a significant reduction from annual growth of 7.2% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.5% annually for the foreseeable future. It's pretty clear that DTE Energy's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that DTE Energy's revenues are expected to grow slower than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on DTE Energy after today.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with DTE Energy, including dilutive stock issuance over the past year. For more information, you can click here to discover this and the 2 other concerns we've identified.

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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.