ADNOC Logistics & Services plc Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

ADNOC Logistics & Services plc (ADX:ADNOCLS) just released its latest first-quarter report and things are not looking great. Results showed a clear earnings miss, with US$1.2b revenue coming in 6.3% lower than what the analystsexpected. Statutory earnings per share (EPS) of US$0.02 missed the mark badly, arriving some 23% below what was 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.

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Taking into account the latest results, the most recent consensus for ADNOC Logistics & Services from nine analysts is for revenues of US$5.15b in 2025. If met, it would imply a sizeable 32% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 11% to US$0.11. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.24b and earnings per share (EPS) of US$0.11 in 2025. 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.

See our latest analysis for ADNOC Logistics & Services

The analysts reconfirmed their price target of د.إ6.31, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on ADNOC Logistics & Services, with the most bullish analyst valuing it at د.إ7.20 and the most bearish at د.إ5.30 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 Logistics & Services' rate of growth is expected to accelerate meaningfully, with the forecast 45% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 30% over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 0.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that ADNOC Logistics & Services is expected to grow much faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still 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.

With that in mind, we wouldn't be too quick to come to a conclusion on ADNOC Logistics & Services. Long-term earnings power is much more important than next year's profits. We have forecasts for ADNOC Logistics & Services going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether ADNOC Logistics & Services' 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.