Yahoo Finance Evergy, Inc. Just Missed EPS By 14%: Here's What Analysts Think Will Happen Next
Evergy, Inc. (NASDAQ:EVRG) just released its latest annual report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at US$5.5b, statutory earnings missed forecasts by 14%, coming in at just US$3.17 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Evergy
After the latest results, the five analysts covering Evergy are now predicting revenues of US$5.89b in 2024. If met, this would reflect a credible 7.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 21% to US$3.84. In the lead-up to this report, the analysts had been modelling revenues of US$5.89b and earnings per share (EPS) of US$3.83 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$55.90, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Evergy at US$65.00 per share, while the most bearish prices it at US$51.00. 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 Evergy's past performance and to peers in the same industry. It's clear from the latest estimates that Evergy's rate of growth is expected to accelerate meaningfully, with the forecast 7.0% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 3.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Evergy is expected to grow much faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Evergy. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Evergy analysts - going out to 2026, and you can see them free on our platform here.
Even so, be aware that Evergy is showing 2 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...
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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.
