As you might know, Constellation Energy Corporation (NASDAQ:CEG) recently reported its full-year numbers. Revenues were US$24b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$11.89 were also better than expected, beating analyst predictions by 13%. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Constellation Energy

Following last week's earnings report, Constellation Energy's ten analysts are forecasting 2025 revenues to be US$23.1b, approximately in line with the last 12 months. Statutory earnings per share are forecast to crater 21% to US$9.44 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$20.7b and earnings per share (EPS) of US$9.44 in 2025. It seems sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$317, implying that the uplift in revenue is not expected to greatly contribute to Constellation Energy's valuation in the near term. 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 Constellation Energy, with the most bullish analyst valuing it at US$385 and the most bearish at US$226 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Constellation Energy shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Constellation Energy's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 1.9% annualised decline to the end of 2025. That is a notable change from historical growth of 8.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Constellation Energy is expected to lag the wider 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. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at US$317, 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 Constellation Energy. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Constellation Energy analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Constellation Energy you should be aware of, and 1 of them shouldn't be ignored.

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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.