Industry Analysts Just Upgraded Their NRG Energy, Inc. (NYSE:NRG) Revenue Forecasts By 10%

NRG Energy, Inc. (NYSE:NRG) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the latest consensus from NRG Energy's five analysts is for revenues of US$28b in 2022, which would reflect a modest 6.2% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to nosedive 58% to US$7.14 in the same period. Before this latest update, the analysts had been forecasting revenues of US$26b and earnings per share (EPS) of US$7.11 in 2022. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

View our latest analysis for NRG Energy

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the NRG Energy's past performance and to peers in the same industry. We would highlight that NRG Energy's revenue growth is expected to slow, with the forecast 8.4% annualised growth rate until the end of 2022 being well below the historical 22% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.0% per year. Even after the forecast slowdown in growth, it seems obvious that NRG Energy is also expected to grow faster 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. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at NRG Energy.

Analysts are clearly in love with NRG Energy at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as a weak balance sheet. For more information, you can click through to our platform to learn more about this and the 1 other risk we've identified .

We also provide an overview of the NRG Energy Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.