ADNOC Drilling Company P.J.S.C. Beat Revenue Forecasts By 5.9%: Here's What Analysts Are Forecasting Next

It's been a good week for ADNOC Drilling Company P.J.S.C. (ADX:ADNOCDRILL) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.3% to د.إ5.10. Results overall were respectable, with statutory earnings of US$0.021 per share roughly in line with what the analysts had forecast. Revenues of US$1.0b came in 5.9% ahead of analyst predictions. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ADNOC Drilling Company P.J.S.C after the latest results.

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

Taking into account the latest results, the consensus forecast from ADNOC Drilling Company P.J.S.C's eleven analysts is for revenues of US$4.28b in 2025. This reflects a meaningful 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 11% to US$0.086. Before this earnings report, the analysts had been forecasting revenues of US$4.18b and earnings per share (EPS) of US$0.084 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of د.إ5.33, suggesting that the forecast performance does not have a long term impact on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values ADNOC Drilling Company P.J.S.C at د.إ6.40 per share, while the most bearish prices it at د.إ4.52. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ADNOC Drilling Company P.J.S.C's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of ADNOC Drilling Company P.J.S.C'shistorical trends, as the 13% annualised revenue growth to the end of 2025 is roughly in line with the 13% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.3% per year. So it's pretty clear that ADNOC Drilling Company P.J.S.C is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards ADNOC Drilling Company P.J.S.C following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at د.إ5.33, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple ADNOC Drilling Company P.J.S.C analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for ADNOC Drilling Company P.J.S.C that you need to be mindful of.

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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.