Analysts Are Updating Their National Central Cooling Company PJSC (DFM:TABREED) Estimates After Its Second-Quarter Results

National Central Cooling Company PJSC (DFM:TABREED) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a credible result overall, with revenues of د.إ611m and statutory earnings per share of د.إ0.15 both in line with analyst estimates, showing that National Central Cooling Company PJSC is executing in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on National Central Cooling Company PJSC after the latest results.

See our latest analysis for National Central Cooling Company PJSC

Following last week's earnings report, National Central Cooling Company PJSC's two analysts are forecasting 2024 revenues to be د.إ2.46b, approximately in line with the last 12 months. Statutory earnings per share are predicted to soar 81% to د.إ0.20. In the lead-up to this report, the analysts had been modelling revenues of د.إ2.53b and earnings per share (EPS) of د.إ0.17 in 2024. Although the analysts have lowered their revenue forecasts, they've also made a decent improvement in their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.

The consensus has made no major changes to the price target of د.إ4.08, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year.

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 National Central Cooling Company PJSC's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.6% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.3% annually. Factoring in the forecast slowdown in growth, it seems obvious that National Central Cooling Company PJSC is also expected to grow slower than other industry participants.

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 National Central Cooling Company PJSC following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Yet - earnings are more important to the intrinsic value of the business. The consensus price target held steady at د.إ4.08, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on National Central Cooling Company PJSC. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 4 warning signs for National Central Cooling Company PJSC 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.