Vistra Corp. Poised for Earnings Release Amid Strong Market Performance
Vistra Corp. (VST), which began operations in 1882 and is headquartered in Irving, Texas, stands as one of the top retail energy producers in the United States. With an impressive capacity of approximately 41 gigawatts, the company’s energy portfolio includes nuclear, natural gas (NGX24), coal, and solar power generation.
Additionally, Vistra operates one of the world’s largest utility-scale battery projects, underscoring its dedication to energy innovation. Currently, with a market capitalization of $45.6 billion, the company significantly influences the future of energy production across the nation.
Upcoming Q3 Earnings Results Expected to Shine Less Brightly
Vistra is set to announce its fiscal 2024 Q3 earnings results on Thursday, November 7. Analysts anticipate that the company’s profit will be $0.69 per share, a 44% decrease from $1.25 per share in the same quarter last year. Notably, Vistra has missed Wall Street’s earnings per share (EPS) estimates in each of the past four quarters, with last quarter’s profit of $0.90 per share falling short by 43.4%.
Looking forward, experts predict that Vistra will report an EPS of $4.70 for fiscal 2024, which reflects a growth of 30.9% compared to $3.59 in fiscal year 2023. Furthermore, its EPS for fiscal 2025 is forecasted to rise 21.9% to reach $5.73.
Stock Performance and Future Outlook
Over the past year, Vistra’s shares have surged by 304.6%, outperforming the S&P 500 Index, which achieved a 35.9% gain, and the Utilities Select Sector SPDR Fund (XLU), which saw a 38.4% return during the same timeframe.
This remarkable market performance is partly attributed to Vistra’s strategic investment in nuclear energy and increased demand from AI-driven data centers. Barclays forecasts a substantial growth in power demand from these centers, potentially reaching over 9% of total consumption by 2030, far exceeding current levels. With its unique combination of natural gas and nuclear energy, Vistra finds itself in an advantageous position to leverage this anticipated surge.
Following a strong Q2 earnings report on August 8, where shares jumped by 6.9% due to a 20.6% annual increase in revenue and an operating adjusted EBITDA of $1.4 billion, investor confidence remains high. Despite some earnings setbacks, the company is making strides in adapting to the AI boom, fueling further investor interest in its stock.
Analyst Ratings Indicate Strong Confidence
The consensus opinion on VST is a “Strong Buy.” Out of 12 analysts covering the stock, 11 recommend a “Strong Buy,” while one suggests a “Moderate Buy.”
The average price target stands at $149.42, indicating a potential upside of 13.9% from the current market prices.
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On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
