COSCO SHIPPING Energy Transportation Co., Ltd. Just Missed EPS By 13%: Here's What Analysts Think Will Happen Next

It's shaping up to be a tough period for COSCO SHIPPING Energy Transportation Co., Ltd. (HKG:1138), which a week ago released some disappointing full-year results that could have a notable impact on how the market views the stock. COSCO SHIPPING Energy Transportation missed earnings this time around, with CN¥22b revenue coming in 2.5% below what the analysts had modelled. Statutory earnings per share (EPS) of CN¥0.70 also fell short of expectations by 13%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for COSCO SHIPPING Energy Transportation

After the latest results, the seven analysts covering COSCO SHIPPING Energy Transportation are now predicting revenues of CN¥27.2b in 2024. If met, this would reflect a sizeable 23% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 81% to CN¥1.27. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥27.1b and earnings per share (EPS) of CN¥1.27 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at HK$10.63. 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. The most optimistic COSCO SHIPPING Energy Transportation analyst has a price target of HK$12.66 per share, while the most pessimistic values it at HK$9.47. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that COSCO SHIPPING Energy Transportation's rate of growth is expected to accelerate meaningfully, with the forecast 23% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 9.7% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 0.3% per year. So it's clear with the acceleration in growth, COSCO SHIPPING Energy Transportation is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. The consensus price target held steady at HK$10.63, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for COSCO SHIPPING Energy Transportation 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 2 warning signs for COSCO SHIPPING Energy Transportation 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.