Stock Analysis

Emirates Central Cooling Systems Corporation (DFM:EMPOWER) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Last week saw the newest yearly earnings release from Emirates Central Cooling Systems Corporation (DFM:EMPOWER), an important milestone in the company's journey to build a stronger business. Results were roughly in line with estimates, with revenues of د.إ3.3b and statutory earnings per share of د.إ0.09. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Emirates Central Cooling Systems

earnings-and-revenue-growth
DFM:EMPOWER Earnings and Revenue Growth February 19th 2025

Following the latest results, Emirates Central Cooling Systems' eight analysts are now forecasting revenues of د.إ3.59b in 2025. This would be a notable 10.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 11% to د.إ0.10. Before this earnings report, the analysts had been forecasting revenues of د.إ3.52b and earnings per share (EPS) of د.إ0.10 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of د.إ2.12, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Emirates Central Cooling Systems at د.إ2.70 per share, while the most bearish prices it at د.إ1.80. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 10.0% growth on an annualised basis. That is in line with its 8.6% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.8% per year. So although Emirates Central Cooling Systems is expected to maintain its revenue growth rate, it's definitely expected to grow faster than 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, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at د.إ2.12, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple Emirates Central Cooling Systems analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Emirates Central Cooling Systems 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.

About DFM:EMPOWER

Emirates Central Cooling Systems

Provides district cooling services in the United Arab Emirates and Kuwait.

Mediocre balance sheet and slightly overvalued.

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