China Oilfield Services Limited (HKG:2883) Just Reported, And Analysts Assigned A HK$9.63 Price Target

As you might know, China Oilfield Services Limited (HKG:2883) recently reported its yearly numbers. Revenues of CN¥48b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at CN¥0.66, missing estimates by 4.2%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Taking into account the latest results, the consensus forecast from China Oilfield Services' ten analysts is for revenues of CN¥51.0b in 2025. This reflects a satisfactory 5.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 26% to CN¥0.83. In the lead-up to this report, the analysts had been modelling revenues of CN¥53.6b and earnings per share (EPS) of CN¥0.95 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

View our latest analysis for China Oilfield Services

It'll come as no surprise then, to learn that the analysts have cut their price target 5.7% to HK$9.63. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic China Oilfield Services analyst has a price target of HK$12.09 per share, while the most pessimistic values it at HK$8.00. 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.

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 pretty clear that there is an expectation that China Oilfield Services' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.7% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.6% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than China Oilfield Services.

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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 China Oilfield Services going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for China Oilfield Services that you need to take into consideration.

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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.