Yahoo Finance Will DTE Energy Company’s (NYSE:DTE) Earnings Grow Over The Next Year?
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Since DTE Energy Company (NYSE:DTE) released its earnings in September 2018, analyst forecasts seem bearish, with earnings expected to decline by -6.6% in the upcoming year compared with the past 5-year average growth rate of 10%. Currently with a trailing-twelve-month profit of US$1.1b, the consensus growth rate suggests that earnings will drop to US$1.1b by 2020. Below is a brief commentary around DTE Energy’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those interested in more of an analysis of the company, you can research its fundamentals here.
See our latest analysis for DTE Energy
How is DTE Energy going to perform in the near future?
Over the next three years, it seems the consensus view of the 10 analysts covering DTE is skewed towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for DTE, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
This results in an annual growth rate of 5.8% based on the most recent earnings level of US$1.1b to the final forecast of US$1.2b by 2022. This leads to an EPS of $7.17 in the final year of projections relative to the current EPS of $6.32. In 2022, DTE’s profit margin will have expanded from 9.0% to 9.7%.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For DTE Energy, I’ve compiled three important factors you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for DTE Energy’s future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of DTE Energy? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
