Analyst Estimates: Here's What Brokers Think Of Emirates Central Cooling Systems Corporation (DFM:EMPOWER) After Its Second-Quarter Report

Explore Emirates Central Cooling Systems's Fair Values from the Community and select yours

Emirates Central Cooling Systems Corporation (DFM:EMPOWER) investors will be delighted, with the company turning in some strong numbers with its latest results. Results were good overall, with revenues beating analyst predictions by 4.0% to hit د.إ913m. Statutory earnings per share (EPS) came in at د.إ0.025, some 3.0% above whatthe analysts had expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Emirates Central Cooling Systems from eight analysts is for revenues of د.إ3.49b in 2025. If met, it would imply a credible 3.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 11% to د.إ0.10. Before this earnings report, the analysts had been forecasting revenues of د.إ3.48b and earnings per share (EPS) of د.إ0.098 in 2025. So the consensus seems to have become somewhat more optimistic on Emirates Central Cooling Systems' earnings potential following these results.

View our latest analysis for Emirates Central Cooling Systems

The consensus price target was unchanged at د.إ2.11, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Emirates Central Cooling Systems at د.إ2.50 per share, while the most bearish prices it at د.إ1.85. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Emirates Central Cooling Systems shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Emirates Central Cooling Systems' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Emirates Central Cooling Systems'historical trends, as the 7.5% annualised revenue growth to the end of 2025 is roughly in line with the 7.9% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.0% per year. So it's pretty clear that Emirates Central Cooling Systems is forecast to grow substantially faster than its industry.

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 Emirates Central Cooling Systems following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Emirates Central Cooling Systems going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Emirates Central Cooling Systems you should be aware of.

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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.