New Jersey Resources Corporation Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

As you might know, New Jersey Resources Corporation (NYSE:NJR) recently reported its annual numbers. Revenues were US$1.8b, 12% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of US$2.92 being in line with what the analysts anticipated. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for New Jersey Resources

Taking into account the latest results, the consensus forecast from New Jersey Resources' four analysts is for revenues of US$2.08b in 2025. This reflects a decent 16% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 8.5% to US$3.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.07b and earnings per share (EPS) of US$2.86 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the decent improvement in earnings per share expectations following these results.

The consensus price target was unchanged at US$52.29, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. Currently, the most bullish analyst values New Jersey Resources at US$60.00 per share, while the most bearish prices it at US$47.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the New Jersey Resources' past performance and to peers in the same industry. One thing stands out from these estimates, which is that New Jersey Resources is forecast to grow faster in the future than it has in the past, with revenues expected to display 16% annualised growth until the end of 2025. If achieved, this would be a much better result than the 2.2% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 4.3% per year. Not only are New Jersey Resources' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards New Jersey Resources following these results. Happily, there were no major changes to revenue forecasts, with the business still 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for New Jersey Resources going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - New Jersey Resources has 3 warning signs (and 1 which is concerning) we think 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.