Qingdao Port International Co., Ltd. Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

Last week saw the newest annual earnings release from Qingdao Port International Co., Ltd. (HKG:6198), an important milestone in the company's journey to build a stronger business. Revenues came in 7.2% below expectations, at CN¥18b. Statutory earnings per share were relatively better off, with a per-share profit of CN¥0.76 being roughly in line with analyst estimates. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Qingdao Port International

Taking into account the latest results, the current consensus from Qingdao Port International's twin analysts is for revenues of CN¥18.7b in 2024. This would reflect a satisfactory 2.7% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 2.9% to CN¥0.78. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥20.7b and earnings per share (EPS) of CN¥0.81 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.

Despite the cuts to forecast earnings, there was no real change to the HK$7.10 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Qingdao Port International's revenue growth is expected to slow, with the forecast 2.7% annualised growth rate until the end of 2024 being well below the historical 12% 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 4.4% 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 Qingdao Port International.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Qingdao Port International. 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. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Before you take the next step you should know about the 1 warning sign for Qingdao Port International 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.