Revenue Miss: The Navigator Company, S.A. Fell 5.8% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

Last week saw the newest second-quarter earnings release from The Navigator Company, S.A. (ELI:NVG), an important milestone in the company's journey to build a stronger business. Revenues came in 5.8% below expectations, at €529m. Statutory earnings per share were relatively better off, with a per-share profit of €0.39 being roughly in line with analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Navigator Company

After the latest results, the four analysts covering Navigator Company are now predicting revenues of €2.22b in 2024. If met, this would reflect a credible 7.8% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be €0.42, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €2.27b and earnings per share (EPS) of €0.39 in 2024. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

There's been no real change to the average price target of €5.23, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. 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. There are some variant perceptions on Navigator Company, with the most bullish analyst valuing it at €6.30 and the most bearish at €4.50 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. The analysts are definitely expecting Navigator Company's growth to accelerate, with the forecast 16% annualised growth to the end of 2024 ranking favourably alongside historical growth of 8.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Navigator Company is expected to grow much faster than its 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 Navigator Company following these results. They also downgraded Navigator Company's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. 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 Simply Wall St, we have a full range of analyst estimates for Navigator Company going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Navigator Company 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com