NorthWestern (NWE) Q3 earnings and revenues surpass estimates

NorthWestern (NWE) came out with quarterly earnings of $0.79 per share, beating the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.65 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +5.33%. A quarter ago, it was expected that this electric and gas utility would post earnings of $0.38 per share when it actually produced earnings of $0.4, delivering a surprise of +5.26%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

NorthWestern, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $387 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.59%. This compares to year-ago revenues of $345.2 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

NorthWestern shares have added about 14.8% since the beginning of the year versus the S&P 500's gain of 17.2%.

What's next for NorthWestern?

While NorthWestern has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for NorthWestern was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.21 on $415.26 million in revenues for the coming quarter and $3.58 on $1.61 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, PPL (PPL), is yet to report results for the quarter ended September 2025. The results are expected to be released on November 5.

This energy and utility holding company is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of +9.5%. The consensus EPS estimate for the quarter has been revised 6.8% higher over the last 30 days to the current level.

PPL's revenues are expected to be $2.17 billion, up 5.1% from the year-ago quarter.

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