Analysts Have Made A Financial Statement On ADNOC Drilling Company P.J.S.C.'s (ADX:ADNOCDRILL) Third-Quarter Report

A week ago, ADNOC Drilling Company P.J.S.C. (ADX:ADNOCDRILL) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. Results were good overall, with revenues beating analyst predictions by 4.9% to hit US$1.3b. Statutory earnings per share (EPS) came in at US$0.023, some 2.0% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the 14 analysts covering ADNOC Drilling Company P.J.S.C are now predicting revenues of US$5.11b in 2026. If met, this would reflect a satisfactory 6.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 6.5% to US$0.097. Before this earnings report, the analysts had been forecasting revenues of US$5.11b and earnings per share (EPS) of US$0.094 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

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

The consensus price target was unchanged at د.إ6.59, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values ADNOC Drilling Company P.J.S.C at د.إ7.50 per share, while the most bearish prices it at د.إ5.61. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

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. It's pretty clear that there is an expectation that ADNOC Drilling Company P.J.S.C's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.9% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.7% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than ADNOC Drilling Company P.J.S.C.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that ADNOC Drilling Company P.J.S.C's revenue is expected to perform worse than the wider industry. The consensus price target held steady at د.إ6.59, 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 forecasts for ADNOC Drilling Company P.J.S.C going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for ADNOC Drilling Company P.J.S.C that you should be aware 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.