Earnings Miss: Offshore Oil Engineering Co.,Ltd Missed EPS By 9.9% And Analysts Are Revising Their Forecasts

Offshore Oil Engineering Co.,Ltd (SHSE:600583) just released its latest full-year report and things are not looking great. Offshore Oil EngineeringLtd missed analyst forecasts, with revenues of CN¥31b and statutory earnings per share (EPS) of CN¥0.37, falling short by 7.2% and 9.9% respectively. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Offshore Oil EngineeringLtd after the latest results.

Check out our latest analysis for Offshore Oil EngineeringLtd

Taking into account the latest results, the consensus forecast from Offshore Oil EngineeringLtd's seven analysts is for revenues of CN¥33.8b in 2024. This reflects a notable 9.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 31% to CN¥0.48. Before this earnings report, the analysts had been forecasting revenues of CN¥37.1b and earnings per share (EPS) of CN¥0.52 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The analysts made no major changes to their price target of CN¥6.34, suggesting the downgrades are not expected to have a long-term impact on Offshore Oil EngineeringLtd's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Offshore Oil EngineeringLtd analyst has a price target of CN¥7.50 per share, while the most pessimistic values it at CN¥4.40. 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 Offshore Oil EngineeringLtd shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Offshore Oil EngineeringLtd's revenue growth is expected to slow, with the forecast 9.8% annualised growth rate until the end of 2024 being well below the historical 22% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 15% per year. Factoring in the forecast slowdown in growth, it seems obvious that Offshore Oil EngineeringLtd is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment 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. The consensus price target held steady at CN¥6.34, with the latest estimates not enough to have an impact on their price targets.

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 Offshore Oil EngineeringLtd going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Offshore Oil EngineeringLtd that we have uncovered.

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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.