NorthWestern Corporation Reports Strong Quarterly Earnings, Beats Estimates
NorthWestern (NWE) released its quarterly earnings of $1.22 per share, surpassing the Zacks Consensus Estimate of $1.16 per share. This figure shows growth compared to earnings of $1.09 per share a year ago, and these results are adjusted for non-recurring items.
The earnings surprise this quarter was 5.17%. In the previous quarter, analysts anticipated earnings of $1.13 per share, which NorthWestern matched exactly, resulting in no surprise.
Over the last four quarters, NorthWestern has exceeded consensus EPS estimates two times. The company, part of the Zacks Utility – Electric Power industry, reported revenues of $466.6 million for the quarter ended March 2025. This missed the Zacks Consensus Estimate by 4.17% and was lower than the $475.3 million generated in the same quarter the previous year. Nevertheless, NorthWestern has surpassed revenue estimates three times in the last four quarters.
The future price movement of NorthWestern’s stock, influenced by these recent results and upcoming earnings expectations, will likely hinge on insights shared during management’s earnings call.
Since the start of the year, NorthWestern shares have increased by approximately 10%, while the S&P 500 has seen a decline of 6%.
What’s Next for NorthWestern?
Investors are now left wondering what’s next for NorthWestern stock. While no definitive answers exist, the company’s earnings outlook can provide valuable insights. This includes current consensus earnings expectations for the upcoming quarters as well as any recent revisions to these expectations.
Research indicates a strong correlation between stock movements and trends in earnings estimate revisions. Investors can monitor these shifts themselves or utilize the Zacks Rank, which has demonstrated an effective track record in predicting earnings estimate revisions.
Before the latest earnings release, the trend in estimate revisions for NorthWestern was mixed. These revisions could shift after the recently released earnings report, which currently gives NorthWestern a Zacks Rank of #3 (Hold). This suggests the shares are expected to perform in line with the market in the near term. The current consensus EPS estimate stands at $0.66, with anticipated revenues of $338.33 million for the upcoming quarter, and $3.58 on $1.58 billion for the fiscal year.
It’s also essential to consider that the industry’s outlook may significantly impact the stock’s performance. Currently, the Utility – Electric Power sector ranks in the top 14% of over 250 industries evaluated by Zacks. Historically, the top 50% of Zacks-ranked industries outpace the bottom 50% by a factor of more than two to one.
Another stock in this sector, Ameren (AEE), is yet to report its results for the quarter ended March 2025, with results expected on May 1. Ameren is anticipated to post quarterly earnings of $1.08 per share, reflecting a year-over-year increase of 10.2%, with the consensus EPS estimate raised by 15.8% in the last 30 days. Projected revenues for Ameren are $1.98 billion, a 9.2% rise from the previous year.
Should You Invest in NorthWestern Corporation (NWE)?
Before considering an investment in NorthWestern Corporation (NWE), it may be beneficial to review additional stocks projected to perform well in the next month.
Comprehensive financial research tools have been available since 1978, with Zacks Rank exhibiting an impressive history of exceeding the S&P 500 with average annual returns of 24.08% based on data from January 1, 1988, through May 6, 2024.
For those interested in investment recommendations, resources for stock insights are widely accessible.
NorthWestern Corporation (NWE): Stock Analysis Report
Ameren Corporation (AEE): Stock Analysis Report
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
