Vistra Corp. Anticipates Strong Q1 Earnings Amid Market Challenges

With a market cap of $33.4 billion, Vistra Corp. (VST) is an integrated retail electricity and power generation company based in Irving, Texas. The company plays a vital role in providing resources for individuals, businesses, and communities through its Retail, Texas, East, West, and Asset Closure segments.

Upcoming Earnings Report

Vistra is set to release its Q1 2025 earnings before markets open on Wednesday, May 7. Analysts forecast a profit of $0.63 per share, reflecting a remarkable growth of 173.9% from the $0.23 reported in the same quarter last year. However, the company has outperformed Wall Street’s bottom-line estimates in only one of the past four quarters, missing expectations on three occasions.

Outlook for Fiscal 2025 and Beyond

For fiscal 2025, analysts project that VST will report earnings per share (EPS) of $5.68, an 18.9% decline from the $7 reported in fiscal 2024. On a more positive note, earnings are expected to rebound in fiscal 2026 with a projected 36.1% year-over-year increase to $7.73 per share.

Stock Performance

VST’s stock has surged 74.7% over the past 52 weeks, significantly outperforming the S&P 500 Index, which gained 9.4%, and the Utilities Select Sector SPDR Fund, which returned 16.9% in the same timeframe.

Investor Sentiment and Analyst Ratings

Following disappointing Q4 2024 results released on February 27, Vistra’s stock dropped 12.3%. The quarter’s revenue of $4 billion marked a 31.2% year-over-year increase but fell short of analysts’ expectations. Net income was reported at $490 million, compared to a loss of $184 million in the same quarter last year, yet EPS only reached $1.14, missing estimates by 47.5%. Such disappointments have impacted investor confidence.

Despite these challenges, analysts maintain a notably optimistic stance on VST, assigning it a “Strong Buy” rating overall. Out of 14 analysts covering the stock, 12 recommend a “Strong Buy,” with two advising a “Hold” rating. The mean price target of $172.86 indicates a 36.5% premium over current price levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For further details, 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.