COSCO SHIPPING Ports Limited Just Missed EPS By 6.2%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that COSCO SHIPPING Ports Limited (HKG:1199) filed its yearly result this time last week. The early response was not positive, with shares down 6.0% to HK$4.71 in the past week. Revenues of US$1.5b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$0.085, missing estimates by 6.2%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the most recent consensus for COSCO SHIPPING Ports from five analysts is for revenues of US$1.55b in 2025. If met, it would imply an okay 2.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 6.8% to US$0.088. In the lead-up to this report, the analysts had been modelling revenues of US$1.61b and earnings per share (EPS) of US$0.10 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

Check out our latest analysis for COSCO SHIPPING Ports

Despite the cuts to forecast earnings, there was no real change to the HK$5.70 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values COSCO SHIPPING Ports at HK$6.00 per share, while the most bearish prices it at HK$5.00. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that COSCO SHIPPING Ports' revenue growth is expected to slow, with the forecast 2.9% annualised growth rate until the end of 2025 being well below the historical 9.9% 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 0.4% annually. So it's pretty clear that, while COSCO SHIPPING Ports' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. They also downgraded COSCO SHIPPING Ports' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at HK$5.70, 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. We have forecasts for COSCO SHIPPING Ports going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for COSCO SHIPPING Ports that you should be aware of.

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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.