Results: Evergy, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates
A week ago, Evergy, Inc. (NASDAQ:EVRG) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. It was a decent earnings report, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 11% higher than the analysts had forecast, at US$1.5b, while EPS of US$0.91 beat analyst models by 15%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, Evergy's nine analysts currently expect revenues in 2026 to be US$6.22b, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 5.5% to US$4.24. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.24b and earnings per share (EPS) of US$4.28 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Check out our latest analysis for Evergy
The analysts reconfirmed their price target of US$91.71, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values Evergy at US$103 per share, while the most bearish prices it at US$80.00. This is a very narrow spread of estimates, implying either that Evergy is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Evergy's growth to accelerate, with the forecast 4.0% annualised growth to the end of 2026 ranking favourably alongside historical growth of 1.9% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.1% per year. So it's clear that despite the acceleration in growth, Evergy is expected to grow meaningfully slower than the industry average.
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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Evergy's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$91.71, 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 Evergy. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Evergy analysts - going out to 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 3 warning signs for Evergy (1 is concerning!) that we have uncovered.
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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.