Irving, Texas-based Vistra Corp. (VST) is a retail electricity and power generation company. It provides electricity and natural gas to residential, commercial, and industrial customers. Its market cap currently stands at $24.7 billion. Vistra is expected to announce its Q2 earnings before the market opens on Thursday, August 8.
Ahead of the event, analysts expect Vistra to report a profit of $1.05 per share, up 1.9% from $1.03 per share reported in the year-ago quarter. The company has missed Wall Street’s EPS projection in three of the past four quarters while surpassing on one other occasion. Its EPS for the last reported quarter declined by 42.5% to $0.23, missing the forecasts by 62.9%.
Looking ahead to fiscal 2024, analysts expect Vistra to report an EPS of $4.99, up 39% from $3.59 in fiscal 2023. In fiscal 2025, its EPS is projected to grow 24.3% year over year to $6.20.
VST stock is up 84.6% on a YTD basis, substantially outperforming the S&P 500 Index’s ($SPX) 14.5% gains and the S&P 500 Utilities Sector SPDR’s (XLU) 12.4% returns over the same time frame.
Shares of Vistra have skyrocketed over 150% over the past 52 weeks, surpassing the broader market, thanks to the surging power demands from AI data centers. As AI technology ramps up, so do energy needs, and Vistra is perfectly poised to meet them with its investments in alternative energy sources. Investors, including Daniel Loeb, are betting big on Vistra’s unique mix of gas and nuclear power plants, seeing it as a key player in this high-demand sector. Guggenheim’s Shahriar Pourreza even dubbed Vistra a “unicorn” in the power market.
The stock also rose 9.1% after its Q1 earnings release on May 8, which beat Wall Street's revenue expectations despite a 31% annual revenue drop to $3.1 billion. Consistent quarterly dividends and a $291 million share repurchase in fiscal Q1 showcase Vistra's commitment to shareholders. This blend of strategic positioning and investor confidence has fueled Vistra’s remarkable stock performance.
The consensus opinion on Vistra stock is bullish, with an overall “Strong Buy” rating. Out of the nine analysts covering the stock, eight recommend a “Strong Buy” and the remaining one analyst suggests a “Moderate Buy.” Over the past three months, four new recommendations have been added to the consensus – one “Moderate Buy” and three new “Strong Buy” recommendations.
The average target price for Vistra is $114.78, indicating a potential upside of 61.4% from current price levels.
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.
