Gulf Warehousing Company Q.P.S.C. Just Missed Revenue By 15%: Here's What Analysts Think Will Happen Next

Gulf Warehousing Company Q.P.S.C. (DSM:GWCS) shareholders are probably feeling a little disappointed, since its shares fell 2.8% to ر.ق3.33 in the week after its latest first-quarter results. Revenues were ر.ق376m, 15% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of ر.ق0.37 being in line with what the analysts anticipated. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Gulf Warehousing Company Q.P.S.C

Following the latest results, Gulf Warehousing Company Q.P.S.C's two analysts are now forecasting revenues of ر.ق1.55b in 2024. This would be a satisfactory 5.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 10% to ر.ق0.39. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.ق1.72b and earnings per share (EPS) of ر.ق0.43 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

The consensus price target fell 5.5% to ر.ق4.79, with the weaker earnings outlook clearly leading valuation estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Gulf Warehousing Company Q.P.S.C's past performance and to peers in the same industry. It's clear from the latest estimates that Gulf Warehousing Company Q.P.S.C's rate of growth is expected to accelerate meaningfully, with the forecast 7.6% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.7% annually. Gulf Warehousing Company Q.P.S.C is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Gulf Warehousing Company Q.P.S.C. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Gulf Warehousing Company 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.