Earnings Report: Black Hills Corporation Missed Revenue Estimates By 14%

Black Hills Corporation (NYSE:BKH) just released its latest quarterly report and things are not looking great. It looks like a weak result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of US$781m missed by 14%, and statutory earnings per share of US$1.73 fell short of forecasts by 8.0%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Black Hills from four analysts is for revenues of US$2.50b in 2026. If met, it would imply a notable 9.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 15% to US$4.35. Before this earnings report, the analysts had been forecasting revenues of US$2.50b and earnings per share (EPS) of US$4.36 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Black Hills

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$83.00. 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. The most optimistic Black Hills analyst has a price target of US$87.00 per share, while the most pessimistic values it at US$76.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Black Hills' past performance and to peers in the same industry. The analysts are definitely expecting Black Hills' growth to accelerate, with the forecast 13% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Black Hills is expected to grow much faster than its industry.

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The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Black Hills. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Black Hills analysts - going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - Black Hills has 2 warning signs (and 1 which is potentially serious) we think you should know about.

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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.

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