NuScale Power's Revenue and EPS Forecasts Revised Downward Amid Analyst Downgrade

NuScale Power Corporation's analysts have revised down their 2025 revenue forecast by 21% to $44m, and earnings per share (EPS) forecast by 48% to $0.48. Despite this, the price target was increased by 8.4% to $41.13, indicating that lower EPS are not expected to impact the stock's value. The downgrades suggest all may not be well at NuScale Power, with revenues expected to grow slower than the wider market.

NuScale Power Corporation has seen its 2025 revenue and earnings per share (EPS) forecasts revised downwards by analysts, signaling a potential slowdown in growth compared to the broader market. The latest updates from analysts suggest a 21% reduction in revenue forecasts to $44 million and a 48% decrease in EPS projections to $0.48. Despite these revisions, the price target for NuScale's stock has been increased by 8.4%, indicating a more optimistic view on the stock's future value despite lower EPS expectations.

The recent earnings call for NuScale Power revealed a miss on EPS expectations, with the company reporting an EPS of -$0.13, falling short of the forecasted -$0.11 by 18.18%. Revenue also fell short of forecasts, reaching $8.1 million compared to the anticipated $11.89 million, marking a 31.88% shortfall. Following the announcement, NuScale's stock price dropped by 2.72% to close at $44.68 and continued to decline in premarket trading [1].

The company's strategic initiatives, such as expanding its Energy Exploration (E2) centers and securing a second NRC approval for its small modular reactor (SMR) design, underscore its commitment to growth and innovation in the SMR market. However, the recent financial challenges, including rising operating expenses and a revenue shortfall, have raised concerns about the company's growth trajectory and financial health.

Analysts have cited potential risks and challenges, including the competitive landscape for SMR technology, potential delays in securing commercial contracts, and macroeconomic pressures impacting the nuclear energy sector. Despite these challenges, NuScale remains focused on expanding its market presence and advancing its SMR technology.

The company's strong financial position, with a market capitalization of $12.71 billion and a current ratio of 6.23, suggests that it has the resources to support its growth initiatives. However, the revised forecasts indicate that NuScale may face slower growth compared to the wider market in 2025.

For comprehensive analysis of NuScale's growth potential and financial outlook, investors are encouraged to review the detailed Pro Research Report available exclusively on InvestingPro.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-nuscale-power-q2-2025-misses-eps-forecast-shares-fall-93CH-4179971