In This Article:
Shareholders of Constellation Energy Corporation (NASDAQ:CEG) will be pleased this week, given that the stock price is up 10% to US$215 following its latest quarterly results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at US$6.2b, statutory earnings beat expectations by a notable 81%, coming in at US$2.78 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Constellation Energy
Following last week's earnings report, Constellation Energy's seven analysts are forecasting 2024 revenues to be US$23.1b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$7.61, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$19.8b and earnings per share (EPS) of US$7.61 in 2024. There's clearly been a surge in bullishness around the company's revenue pipeline, even if there's no real change in earnings per share forecasts.
The analysts increased their price target 13% to US$207, perhaps signalling that higher revenues are a strong leading indicator for Constellation Energy's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Constellation Energy, with the most bullish analyst valuing it at US$242 and the most bearish at US$116 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Constellation Energy's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 2.4% annualised decline to the end of 2024. That is a notable change from historical growth of 7.4% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.9% per year. It's pretty clear that Constellation Energy's revenues are expected to perform substantially worse than the wider industry.