Emirates Central Cooling Systems Corporation Just Missed Earnings - But Analysts Have Updated Their Models

Emirates Central Cooling Systems Corporation (DFM:EMPOWER) missed earnings with its latest first-quarter results, disappointing overly-optimistic forecasters. Unfortunately, Emirates Central Cooling Systems delivered a serious earnings miss. Revenues of د.إ538m were 12% below expectations, and statutory earnings per share of د.إ0.016 missed estimates by 20%. 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 Emirates Central Cooling Systems

Taking into account the latest results, the most recent consensus for Emirates Central Cooling Systems from seven analysts is for revenues of د.إ3.36b in 2024. If met, it would imply a decent 8.8% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 5.1% to د.إ0.10. Yet prior to the latest earnings, the analysts had been anticipated revenues of د.إ3.37b and earnings per share (EPS) of د.إ0.096 in 2024. So the consensus seems to have become somewhat more optimistic on Emirates Central Cooling Systems' earnings potential following these results.

There's been no major changes to the consensus price target of د.إ2.11, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. There are some variant perceptions on Emirates Central Cooling Systems, with the most bullish analyst valuing it at د.إ2.80 and the most bearish at د.إ1.77 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. It's clear from the latest estimates that Emirates Central Cooling Systems' rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 9.5% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Emirates Central Cooling Systems is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Emirates Central Cooling Systems' earnings potential next year. 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. 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. At Simply Wall St, we have a full range of analyst estimates for Emirates Central Cooling Systems going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Emirates Central Cooling Systems .

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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.