ADNOC Drilling Company P.J.S.C. (ADX:ADNOCDRILL) Full-Year Results: Here's What Analysts Are Forecasting For This Year

Last week, you might have seen that ADNOC Drilling Company P.J.S.C. (ADX:ADNOCDRILL) released its annual result to the market. The early response was not positive, with shares down 4.7% to د.إ3.41 in the past week. It looks like the results were a bit of a negative overall. While revenues of US$2.3b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.9% to hit US$0.038 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for ADNOC Drilling Company P.J.S.C

Taking into account the latest results, the most recent consensus for ADNOC Drilling Company P.J.S.C from seven analysts is for revenues of US$2.55b in 2022 which, if met, would be a meaningful 12% increase on its sales over the past 12 months. Statutory earnings per share are predicted to rise 5.0% to US$0.04. In the lead-up to this report, the analysts had been modelling revenues of US$2.55b and earnings per share (EPS) of US$0.04 in 2022. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at د.إ3.52. 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 ADNOC Drilling Company P.J.S.C analyst has a price target of د.إ3.85 per share, while the most pessimistic values it at د.إ3.16. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that ADNOC Drilling Company P.J.S.C's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 4.9% p.a. over the past three years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that ADNOC Drilling Company P.J.S.C is expected to grow at about the same rate as the wider industry.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at د.إ3.52, 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 ADNOC Drilling Company P.J.S.C analysts - going out to 2024, and you can see them free on our platform here.

It might also be worth considering whether ADNOC Drilling Company P.J.S.C's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.