Essential Utilities, Inc. (NYSE:WTRG) just released its quarterly report and things are looking bullish. Essential Utilities delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting US$784m-14% above indicated-andUS$1.03-25% above forecasts- respectively 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Our free stock report includes 2 warning signs investors should be aware of before investing in Essential Utilities. Read for free now.NYSE:WTRG Earnings and Revenue Growth May 15th 2025

Taking into account the latest results, Essential Utilities' six analysts currently expect revenues in 2025 to be US$2.29b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 4.0% to US$2.10 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$2.35b and earnings per share (EPS) of US$2.11 in 2025. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

Check out our latest analysis for Essential Utilities

The consensus has reconfirmed its price target of US$45.56, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Essential Utilities' market value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Essential Utilities, with the most bullish analyst valuing it at US$56.00 and the most bearish at US$42.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Essential Utilities' revenue growth is expected to slow, with the forecast 2.0% annualised growth rate until the end of 2025 being well below the historical 10% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.3% 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 Essential Utilities.

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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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Yet - earnings are more important to the intrinsic value of the business. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Essential Utilities analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Essential Utilities has  2 warning signs  (and 1 which is potentially serious)  we think you should know about.

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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.

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