As you might know, Public Service Enterprise Group Incorporated (NYSE:PEG) just kicked off its latest third-quarter results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 2.3% to hit US$2.6b. Statutory earnings per share (EPS) came in at US$1.04, some 8.9% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the current consensus from Public Service Enterprise Group's 14 analysts is for revenues of US$11.1b in 2025. This would reflect an okay 6.7% increase on its revenue over the past 12 months. Statutory per share are forecast to be US$4.03, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$11.1b and earnings per share (EPS) of US$4.08 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$88.28, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Public Service Enterprise Group analyst has a price target of US$102 per share, while the most pessimistic values it at US$68.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. It's clear from the latest estimates that Public Service Enterprise Group's rate of growth is expected to accelerate meaningfully, with the forecast 5.3% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Public Service Enterprise Group is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 Public Service Enterprise Group. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Public Service Enterprise Group going out to 2026, and you can see them free on our platform here..

Even so, be aware that Public Service Enterprise Group is showing 3 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...

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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.