Revenue Beat: Abu Dhabi Ports Company PJSC Beat Analyst Estimates By 15%

Abu Dhabi Ports Company PJSC (ADX:ADPORTS) shareholders are probably feeling a little disappointed, since its shares fell 2.2% to د.إ6.56 in the week after its latest quarterly results. It was a mildly positive result, with revenues exceeding expectations at د.إ1.8b, while statutory earnings per share (EPS) of د.إ0.07 were in line with analyst forecasts. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Abu Dhabi Ports Company PJSC

Taking into account the latest results, the most recent consensus for Abu Dhabi Ports Company PJSC from three analysts is for revenues of د.إ7.66b in 2023 which, if met, would be a major 22% increase on its sales over the past 12 months. Per-share earnings are expected to step up 12% to د.إ0.28. Yet prior to the latest earnings, the analysts had been anticipated revenues of د.إ8.53b and earnings per share (EPS) of د.إ0.26 in 2023. Indeed we can see that the consensus opinion has undergone some fundamental changes after the latest results, with a substantial drop in revenues at the same time as boosting EPS forecasts.

The consensus has made no major changes to the price target of د.إ7.49, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Abu Dhabi Ports Company PJSC analyst has a price target of د.إ8.00 per share, while the most pessimistic values it at د.إ6.84. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. It's pretty clear that there is an expectation that Abu Dhabi Ports Company PJSC's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 31% growth on an annualised basis. This is compared to a historical growth rate of 51% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% per year. So it's pretty clear that, while Abu Dhabi Ports Company PJSC's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Abu Dhabi Ports Company PJSC following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Still, earnings are more important to the intrinsic value of the business. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Abu Dhabi Ports Company PJSC going out to 2025, and you can see them free on our platform here.

It might also be worth considering whether Abu Dhabi Ports Company PJSC's 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.