A Glimpse of NorthWestern's Earnings Potential

NorthWestern NWE is set to give its latest quarterly earnings report on Monday, 2024-10-28. Here's what investors need to know before the announcement.

Analysts estimate that NorthWestern will report an earnings per share (EPS) of $0.71.

The announcement from NorthWestern is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Performance in Previous Earnings

During the last quarter, the company reported an EPS beat by $0.01, leading to a 0.49% increase in the share price on the subsequent day.

Here's a look at NorthWestern's past performance and the resulting price change:

Stock Performance

Shares of NorthWestern were trading at $55.1 as of October 24. Over the last 52-week period, shares are up 16.17%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on NorthWestern

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding NorthWestern.

The consensus rating for NorthWestern is Neutral, based on 6 analyst ratings. With an average one-year price target of $58.83, there's a potential 6.77% upside.

Understanding Analyst Ratings Among Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Avista, Black Hills and NiSource, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Avista received a Underperform consensus from analysts, with an average 1-year price target of $37.0, implying a potential 32.85% downside.
• Black Hills received a Neutral consensus from analysts, with an average 1-year price target of $63.5, implying a potential 15.25% upside.
• NiSource is maintaining an Outperform status according to analysts, with an average 1-year price target of $36.57, indicating a potential 33.63% downside.

Insights: Peer Analysis

Within the peer analysis summary, vital metrics for Avista, Black Hills and NiSource are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

NorthWestern ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, NorthWestern is at the top among its peers.

Unveiling the Story Behind NorthWestern

NorthWestern Energy Group Inc provides electricity and natural gas services in the Upper Midwest and Northwest of the U.S. in the states of Montana, South Dakota, Nebraska, and Yellowstone National Park. The company's primary segments include Electric utility operations, which include the generation, purchase, transmission, and distribution of electricity, and Natural Gas utility operations, which include the production, purchase, transmission, storage, and distribution of natural gas. The company uses thermal, wind, hydro, or renewable energy in varying quantities, depending on the location of the facilities, to generate power. The company derives the majority of revenue from Electric utility operations segment.

NorthWestern's Economic Impact: An Analysis

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: NorthWestern displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 10.13%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Utilities sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: NorthWestern's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 9.89%, the company may face hurdles in effective cost management.

Return on Equity (ROE): NorthWestern's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.13%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.41%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.03.

To track all earnings releases for NorthWestern visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.