MPC Container Ships ASA Beat Revenue Forecasts By 6.1%: Here's What Analysts Are Forecasting Next

Last week, you might have seen that MPC Container Ships ASA (OB:MPCC) released its yearly result to the market. The early response was not positive, with shares down 4.1% to kr18.03 in the past week. Results overall were respectable, with statutory earnings of US$0.60 per share roughly in line with what the analysts had forecast. Revenues of US$541m came in 6.1% ahead of analyst predictions. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on MPC Container Ships after the latest results.

See our latest analysis for MPC Container Ships

Taking into account the latest results, the three analysts covering MPC Container Ships provided consensus estimates of US$487.0m revenue in 2025, which would reflect an uneasy 10.0% decline over the past 12 months. Statutory earnings per share are expected to tumble 28% to US$0.43 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$486.7m and earnings per share (EPS) of US$0.40 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The average the analysts price target fell 7.9% to kr19.36, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values MPC Container Ships at kr20.08 per share, while the most bearish prices it at kr17.95. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the MPC Container Ships' past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 10.0% by the end of 2025. This indicates a significant reduction from annual growth of 27% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 2.0% per year. So it's pretty clear that MPC Container Ships' revenues are expected to shrink faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards MPC Container Ships following these results. The consensus also reconfirmed their revenue estimates, suggesting that it is performing in line with expectations. Plus, our data suggests that MPC Container Ships is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of MPC Container Ships' future valuation.

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 Simply Wall St, we have a full range of analyst estimates for MPC Container Ships going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for MPC Container Ships (2 are a bit unpleasant!) 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.