Earnings Update: Dana Gas PJSC (ADX:DANA) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts

Dana Gas PJSC (ADX:DANA) came out with its second-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Dana Gas PJSC reported in line with analyst predictions, delivering revenues of US$70m and statutory earnings per share of US$0.021, suggesting the business is executing well and in line with its plan. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following last week's earnings report, Dana Gas PJSC's two analysts are forecasting 2025 revenues to be US$335.5m, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$0.022, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$330.5m and earnings per share (EPS) of US$0.025 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

See our latest analysis for Dana Gas PJSC

It might be a surprise to learn that the consensus price target was broadly unchanged at د.إ0.93, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Dana Gas PJSC's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.0% growth on an annualised basis. This is compared to a historical growth rate of 8.1% over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 0.2% annually. Factoring in the forecast slowdown in growth, it's pretty clear that Dana Gas PJSC is still expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Dana Gas PJSC. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that Dana Gas PJSC's revenue is expected to perform better than the wider industry. The consensus price target held steady at د.إ0.93, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Dana Gas PJSC .

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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.