COSCO SHIPPING Ports Limited (HKG:1199) Just Reported Interim Earnings: Have Analysts Changed Their Mind On The Stock?

As you might know, COSCO SHIPPING Ports Limited (HKG:1199) recently reported its interim numbers. It was a credible result overall, with revenues of US$806m and statutory earnings per share of US$0.085 both in line with analyst estimates, showing that COSCO SHIPPING Ports is executing in line with expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following last week's earnings report, COSCO SHIPPING Ports' five analysts are forecasting 2025 revenues to be US$1.63b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$0.091, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.61b and earnings per share (EPS) of US$0.086 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for COSCO SHIPPING Ports

There's been no major changes to the consensus price target of HK$5.89, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. Currently, the most bullish analyst values COSCO SHIPPING Ports at HK$6.36 per share, while the most bearish prices it at HK$5.50. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

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. We would highlight that COSCO SHIPPING Ports' revenue growth is expected to slow, with the forecast 0.5% annualised growth rate until the end of 2025 being well below the historical 9.0% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.0% annually. Factoring in the forecast slowdown in growth, it seems obvious that COSCO SHIPPING Ports is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around COSCO SHIPPING Ports' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 in mind, we wouldn't be too quick to come to a conclusion on COSCO SHIPPING Ports. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple COSCO SHIPPING Ports analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for COSCO SHIPPING Ports 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.