New Jersey Resources Corporation Just Recorded A 7.5% EPS Beat: Here's What Analysts Are Forecasting Next

The second-quarter results for New Jersey Resources Corporation (NYSE:NJR) were released last week, making it a good time to revisit its performance. The result was positive overall - although revenues of US$658m were in line with what the analysts predicted, New Jersey Resources surprised by delivering a statutory profit of US$1.22 per share, modestly greater than expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for New Jersey Resources

Taking into account the latest results, the most recent consensus for New Jersey Resources from four analysts is for revenues of US$2.04b in 2024. If met, it would imply a notable 19% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 19% to US$2.99. Before this earnings report, the analysts had been forecasting revenues of US$2.04b and earnings per share (EPS) of US$2.94 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$48.14, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values New Jersey Resources at US$57.00 per share, while the most bearish prices it at US$43.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. 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 41% annualised growth until the end of 2024. If achieved, this would be a much better result than the 2.3% 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 8.3% 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$48.14, 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 New Jersey Resources. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple New Jersey Resources analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for New Jersey Resources (1 is a bit concerning!) that you should be aware of.

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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.