Abu Dhabi National Oil Company for Distribution PJSC Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Abu Dhabi National Oil Company for Distribution PJSC (ADX:ADNOCDIST) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues of د.إ8.8b fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of د.إ0.05 an impressive 20% ahead of estimates. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Abu Dhabi National Oil Company for Distribution PJSC

Taking into account the latest results, Abu Dhabi National Oil Company for Distribution PJSC's seven analysts currently expect revenues in 2024 to be د.إ35.7b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 7.1% to د.إ0.20 in the same period. In the lead-up to this report, the analysts had been modelling revenues of د.إ36.3b and earnings per share (EPS) of د.إ0.20 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at د.إ4.26. 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 Abu Dhabi National Oil Company for Distribution PJSC analyst has a price target of د.إ4.70 per share, while the most pessimistic values it at د.إ3.49. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.8% by the end of 2024. This indicates a significant reduction from annual growth of 15% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.5% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Abu Dhabi National Oil Company for Distribution PJSC is expected to lag 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Abu Dhabi National Oil Company for Distribution PJSC's revenue is expected to 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Abu Dhabi National Oil Company for Distribution PJSC going out to 2026, and you can see them free on our platform here..

Even so, be aware that Abu Dhabi National Oil Company for Distribution PJSC 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.