Qatar Gas Transport Company Limited (Nakilat) (QPSC) Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

The quarterly results for Qatar Gas Transport Company Limited (Nakilat) (QPSC) (DSM:QGTS) were released last week, making it a good time to revisit its performance. Revenues were ر.ق876m, 11% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of ر.ق0.06 being in line with what the analysts anticipated. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Qatar Gas Transport Company Limited (Nakilat) (QPSC)

Taking into account the latest results, Qatar Gas Transport Company Limited (Nakilat) (QPSC)'s four analysts currently expect revenues in 2021 to be ر.ق3.58b, approximately in line with the last 12 months. Statutory earnings per share are predicted to grow 11% to ر.ق0.24. Before this earnings report, the analysts had been forecasting revenues of ر.ق3.58b and earnings per share (EPS) of ر.ق0.23 in 2021. So the consensus seems to have become somewhat more optimistic on Qatar Gas Transport Company Limited (Nakilat) (QPSC)'s earnings potential following these results.

There's been no major changes to the consensus price target of ر.ق3.57, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic Qatar Gas Transport Company Limited (Nakilat) (QPSC) analyst has a price target of ر.ق3.75 per share, while the most pessimistic values it at ر.ق3.40. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Qatar Gas Transport Company Limited (Nakilat) (QPSC)'s revenue growth is expected to slow, with the forecast 0.9% annualised growth rate until the end of 2021 being well below the historical 2.3% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Qatar Gas Transport Company Limited (Nakilat) (QPSC).

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Qatar Gas Transport Company Limited (Nakilat) (QPSC)'s earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at ر.ق3.57, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Qatar Gas Transport Company Limited (Nakilat) (QPSC) going out to 2024, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Qatar Gas Transport Company Limited (Nakilat) (QPSC) .

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