Clearway Energy, Inc. Just Missed Earnings - But Analysts Have Updated Their Models
AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.
Following last week's earnings report, Clearway Energy's ten analysts are forecasting 2025 revenues to be US$1.44b, approximately in line with the last 12 months. Per-share earnings are expected to grow 13% to US$0.73. In the lead-up to this report, the analysts had been modelling revenues of US$1.46b and earnings per share (EPS) of US$0.99 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.
View our latest analysis for Clearway Energy
It might be a surprise to learn that the consensus price target was broadly unchanged at US$35.50, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Clearway Energy, with the most bullish analyst valuing it at US$40.00 and the most bearish at US$32.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Clearway Energy's revenue growth is expected to slow, with the forecast 1.2% annualised growth rate until the end of 2025 being well below the historical 3.6% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that Clearway Energy is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$35.50, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Clearway Energy analysts - going out to 2027, and you can see them free on our platform here.
You still need to take note of risks, for example - Clearway Energy has 2 warning signs (and 1 which is potentially serious) we think you should know about.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 minutes ago
- Yahoo
After Sitting on the Sidelines For 14 Months, Warren Buffett Could Be Buying One of His Favorite Stocks Again
Key Points Warren Buffett has been a net seller of stocks in each of the last 11 quarters. While he doesn't time the market, Buffett won't buy stocks if they don't trade below his estimate of intrinsic value. This stock's price has come down from its all-time high while its financials improve, making it a more appealing value right now. 10 stocks we like better than Berkshire Hathaway › Warren Buffett hasn't seen a lot to like in the stock market recently. In fact, he and his team of investment managers at Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) have been net sellers of stocks for 11 straight quarters. Buffett's stock sales have accelerated over the past five quarters. That includes monster sales of Berkshire's stakes in Apple and Bank of America. In the meantime, he's stopped buying one stock investors had seen him buy consistently each quarter since mid-2018. As a result, Berkshire's cash pile has climbed to a whopping $344 billion. But the market may be offering Buffett an opportunity to start buying his favorite stock again, and investors should consider doing the same. Buffett isn't timing the market Buffett's big stock sales over the last few years and his lack of purchases may be seen by some as the Oracle of Omaha trying to predict the future and time the market. While it might look like market timing, Buffett is merely sticking to what's worked for him as an investor for the last 60 years or so. "We try to price, rather than time, purchases," Buffett wrote in his 1994 letter to shareholders. The same could be said of Berkshire's stock sales. If the market is offering a massive premium on one of Berkshire's holdings, Buffett ought to sell it, pocket the cash, and look for opportunities in stocks trading well below their intrinsic value. That could even include buying Berkshire Hathaway shares themselves. In fact, the board of directors updated its share repurchase policy in 2018, allowing Buffett to buy back shares of the company as long as it traded below its intrinsic value, conservatively determined. Buffett quickly went to work buying back shares following that change, indicating that the stock looked like a bargain. Between 2018 and May 2024, Buffett spent $78 billion buying back shares of Berkshire Hathaway. Over the last 14 months, however, Buffett hasn't spent a single dollar buying back the stock based on Berkshire's quarterly earnings reports. He holds himself to the same high standards he expects of the CEOs of all the companies Berkshire invests in. "All stock repurchases should be price-dependent. What is sensible at a discount to business-value becomes stupid if done at a premium," he wrote in his 2023 letter to shareholders. But Berkshire shares have fallen considerably since Buffett announced he would step down as CEO at the end of the year during the company's annual meeting in May. And after a further sell-off sparked by its second-quarter earnings report, shares are starting to look a lot more appealing. That could open the door for Buffett to start buying back Berkshire's stock. Will Buffett start buying again? Berkshire Hathaway's earnings disappointed many investors, leading the market to sell off the stock. After a stellar 2024, the insurance business is back to more normalized operations, including big payouts earlier this year due to the California wildfires. That's led to a drop in underwriting profits, which pushed the conglomerate's total operating earnings down nearly 4% last quarter. It's worth noting, however, that Berkshire faced significant foreign exchange headwinds last quarter, which negatively affected operating earnings. Berkshire also wrote down its Kraft Heinz investment by $5 billion. That follows a $3 billion impairment charge it took in 2019. That further negatively affected reported earnings. Nonetheless, Buffett has seen the book value per share of Berkshire Hathaway climb, including a 2.1% gain from the first quarter, and a 10.9% increase from a year ago. Combined with the declining stock price over the last three months, Berkshire Hathaway shares now trade for a price-to-book ratio of about 1.5. That's an important valuation, because when Buffett last repurchased shares of Berkshire, the stock traded below that valuation. The stock has rarely dipped below that price since last May. But shares are certainly more attractive after the sell-off. A couple of factors could keep Buffett from buying at the current price. First, Berkshire's marketable equity portfolio is a significant factor in its book value. Buffett may still see most of the stocks in the portfolio as overpriced, especially as stocks continued to climb over the past year. That would push him to require a lower multiple for Berkshire stock, since repurchasing Berkshire shares would also mean purchasing a small piece of its equity portfolio. The other factor is that he may want to use a significant chunk of cash to bolster the railroad business in the near future. Union Pacific and Norfolk Southern have agreed to a merger, threatening the competitiveness of Berkshire's Burlington Northern Santa Fe. When you consider the strength of Berkshire's balance sheet and that it's not relying on insurance float for any capital at this point, it should trade for a higher price-to-book value ratio than it has historically. With shares trading around 1.5 times book value, the stock finally looks to be trading near its intrinsic value again, making it worth buying. Should you buy stock in Berkshire Hathaway right now? Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Berkshire Hathaway wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Bank of America is an advertising partner of Motley Fool Money. Adam Levy has positions in Apple and Union Pacific. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends Kraft Heinz and Union Pacific. The Motley Fool has a disclosure policy. After Sitting on the Sidelines For 14 Months, Warren Buffett Could Be Buying One of His Favorite Stocks Again was originally published by The Motley Fool
Yahoo
4 minutes ago
- Yahoo
Why Reddit Stock Skyrocketed This Week
Key Points Reddit reported its second-quarter results on July 31, and the stock has been on a tear since then. Reddit's sales and earnings are rising rapidly. Data licensing for artificial intelligence models has turned into a powerful growth driver for Reddit. 10 stocks we like better than Reddit › Reddit (NYSE: RDDT) stock continued to rocket higher in this week's trading thanks to strong quarterly results. The social media player's price rose 14.2% over the last week of trading. Reddit published its second-quarter report on July 31, and the results spurred a surge in bullish momentum that extended into this week's trading. The company's share price is now up roughly 308% over the last year of trading. Reddit stock roars higher on big Q2 beats Reddit's second-quarter report arrived with results that caused investors to adopt a far more bullish stance on the company's outlook. In Q2, Reddit reported a profit of $0.45 per share on sales of $500 million. The performance came in far better than the average analyst estimate, which had targeted earnings per share of $0.19 and revenue of $426 million. The company's sales increased 78% year over year in the period, and the strong performance beats caused a wide range of Wall Street analysts to significantly increase their one-year price targets on the stock. With excitement surrounding Reddit's future growing, strong post-earnings valuation gains continued over the last week of trading. What's next for Reddit? For the current quarter, Reddit expects its sales to come in between $535 million and $545 million. Hitting the midpoint of that guidance range would mean posting year-over-year sales growth of roughly 55% in the third quarter. Reddit is seeing strong sales and earnings momentum in conjunction with data generated from its platform being a go-to resource for the training of artificial intelligence (AI) models. While the platform's user base has historically monetized at relatively low levels compared to other social sites, data licensing for AI models seems to have changed the game. Should you invest $1,000 in Reddit right now? Before you buy stock in Reddit, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Reddit wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Reddit Stock Skyrocketed This Week was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 minutes ago
- Yahoo
When Should You Buy Nuix Limited (ASX:NXL)?
Explore Nuix's Fair Values from the Community and select yours Nuix Limited (ASX:NXL), might not be a large cap stock, but it saw a decent share price growth of 17% on the ASX over the last few months. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. But what if there is still an opportunity to buy? Let's examine Nuix's valuation and outlook in more detail to determine if there's still a bargain opportunity. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. What Is Nuix Worth? Great news for investors – Nuix is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is A$3.32, but it is currently trading at AU$2.33 on the share market, meaning that there is still an opportunity to buy now. What's more interesting is that, Nuix's share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. View our latest analysis for Nuix Can we expect growth from Nuix? Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. In Nuix's case, its revenues over the next few years are expected to grow by 42%, indicating a highly optimistic future ahead. If expense does not increase by the same rate, or higher, this top line growth should lead to stronger cash flows, feeding into a higher share value. What This Means For You Are you a shareholder? Since NXL is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation. Are you a potential investor? If you've been keeping an eye on NXL for a while, now might be the time to make a leap. Its prosperous future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy NXL. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy. It can be quite valuable to consider what analysts expect for Nuix from their most recent forecasts. Luckily, you can check out what analysts are forecasting by clicking here. If you are no longer interested in Nuix, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
