Borouge plc Just Missed EPS By 11%: Here's What Analysts Think Will Happen Next

Borouge plc (ADX:BOROUGE) just released its latest third-quarter report and things are not looking great. Borouge missed earnings this time around, with US$1.4b revenue coming in 2.6% below what the analysts had modelled. Statutory earnings per share (EPS) of US$0.01 also fell short of expectations by 11%. 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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Following the latest results, Borouge's eight analysts are now forecasting revenues of US$6.39b in 2026. This would be a decent 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 15% to US$0.042. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.27b and earnings per share (EPS) of US$0.042 in 2026. 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 Borouge

There were no changes to revenue or earnings estimates or the price target of د.إ2.77, suggesting that the company has met expectations in its recent result. 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 Borouge at د.إ3.05 per share, while the most bearish prices it at د.إ2.30. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. One thing stands out from these estimates, which is that Borouge is forecast to grow faster in the future than it has in the past, with revenues expected to display 8.2% annualised growth until the end of 2026. If achieved, this would be a much better result than the 2.8% annual decline over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 12% annually for the foreseeable future. So although Borouge's revenue growth is expected to improve, it is still expected to grow slower than the 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, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 Borouge. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Borouge analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Borouge is showing 2 warning signs in our investment analysis , you should know about...

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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.