ADNOC Logistics & Services plc Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Explore ADNOC Logistics & Services's Fair Values from the Community and select yours

As you might know, ADNOC Logistics & Services plc (ADX:ADNOCLS) just kicked off its latest quarterly results with some very strong numbers. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 11% higher than the analysts had forecast, at US$1.3b, while EPS were US$0.03 beating analyst models by 31%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from ADNOC Logistics & Services' ten analysts is for revenues of US$4.54b in 2025. This would reflect an okay 6.9% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 5.7% to US$0.11. In the lead-up to this report, the analysts had been modelling revenues of US$4.53b and earnings per share (EPS) of US$0.11 in 2025. 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.

See our latest analysis for ADNOC Logistics & Services

There were no changes to revenue or earnings estimates or the price target of د.إ6.33, suggesting that the company has met expectations in its recent result. 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. The most optimistic ADNOC Logistics & Services analyst has a price target of د.إ7.00 per share, while the most pessimistic values it at د.إ5.10. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that ADNOC Logistics & Services' revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2025 being well below the historical 30% growth over the last year. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 0.2% annually. So it's clear that despite the slowdown in growth, ADNOC Logistics & Services is still expected to grow meaningfully 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. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better 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 forecasts for ADNOC Logistics & Services going out to 2027, and you can see them free on our platform here.

You can also view our analysis of ADNOC Logistics & Services' balance sheet, and whether we think ADNOC Logistics & Services is carrying too much debt, for free on our 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.