Industries Qatar Q.P.S.C. Just Recorded A 26% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in Industries Qatar Q.P.S.C. (DSM:IQCD) had a good week, as its shares rose 2.1% to close at ر.ق12.25 following the release of its quarterly results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at ر.ق2.9b, statutory earnings beat expectations by a notable 26%, coming in at ر.ق0.21 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Industries Qatar Q.P.S.C after the latest results.

Check out our latest analysis for Industries Qatar Q.P.S.C

Taking into account the latest results, the most recent consensus for Industries Qatar Q.P.S.C from eight analysts is for revenues of ر.ق11.7b in 2024. If met, it would imply a satisfactory 4.9% increase on its revenue over the past 12 months. Statutory per share are forecast to be ر.ق0.80, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.ق12.4b and earnings per share (EPS) of ر.ق0.81 in 2024. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The average price target was steady at ر.ق15.18even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. 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 Industries Qatar Q.P.S.C at ر.ق19.00 per share, while the most bearish prices it at ر.ق13.50. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Industries Qatar Q.P.S.C's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 6.6% growth on an annualised basis. This is compared to a historical growth rate of 23% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.4% annually. Factoring in the forecast slowdown in growth, it looks like Industries Qatar Q.P.S.C is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Even so, long term profitability is more important for the value creation process. The consensus price target held steady at ر.ق15.18, 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 Industries Qatar Q.P.S.C going out to 2026, 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 Industries Qatar Q.P.S.C 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.