Dubai Electricity and Water Authority (PJSC) (DFM:DEWA) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year
Dubai Electricity and Water Authority (PJSC) (DFM:DEWA) shareholders are probably feeling a little disappointed, since its shares fell 2.2% to د.إ2.73 in the week after its latest second-quarter results. Revenues came in 2.2% below expectations, at د.إ8.4b. Statutory earnings per share were relatively better off, with a per-share profit of د.إ0.046 being roughly in line with analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Dubai Electricity and Water Authority (PJSC) after the latest results.
Taking into account the latest results, Dubai Electricity and Water Authority (PJSC)'s 13 analysts currently expect revenues in 2026 to be د.إ33.6b, approximately in line with the last 12 months. Statutory earnings per share are expected to shrink 4.7% to د.إ0.17 in the same period. In the lead-up to this report, the analysts had been modelling revenues of د.إ33.6b and earnings per share (EPS) of د.إ0.16 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
See our latest analysis for Dubai Electricity and Water Authority (PJSC)
The consensus price target was unchanged at د.إ3.15, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Dubai Electricity and Water Authority (PJSC), with the most bullish analyst valuing it at د.إ3.45 and the most bearish at د.إ2.75 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Dubai Electricity and Water Authority (PJSC)'s revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.8% growth on an annualised basis. This is compared to a historical growth rate of 5.7% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.4% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Dubai Electricity and Water Authority (PJSC).
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Dubai Electricity and Water Authority (PJSC) following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 Dubai Electricity and Water Authority (PJSC). Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Dubai Electricity and Water Authority (PJSC) analysts - going out to 2028, and you can see them free on our platform here.
It might also be worth considering whether Dubai Electricity and Water Authority (PJSC)'s debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, 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.