ADNOC Drilling Company P.J.S.C. Just Beat EPS By 7.1%: Here's What Analysts Think Will Happen Next

ADNOC Drilling Company P.J.S.C. (ADX:ADNOCDRILL) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. ADNOC Drilling Company P.J.S.C reported US$3.1b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.065 beat expectations, being 7.1% higher than what the analysts expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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

After the latest results, the eleven analysts covering ADNOC Drilling Company P.J.S.C are now predicting revenues of US$3.69b in 2024. If met, this would reflect a major 21% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 7.1% to US$0.069. Before this earnings report, the analysts had been forecasting revenues of US$3.68b and earnings per share (EPS) of US$0.07 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of د.إ4.42, showing that the business is executing well and in line with expectations. 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.إ4.90 per share, while the most bearish prices it at د.إ3.44. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. 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 21% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 9.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect ADNOC Drilling Company P.J.S.C to grow faster than 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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.