Qatar Navigation Q.P.S.C. Just Missed EPS By 5.2%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Qatar Navigation Q.P.S.C. (DSM:QNNS) released its full-year result to the market. The early response was not positive, with shares down 6.3% to ر.ق9.70 in the past week. It looks like the results were a bit of a negative overall. While revenues of ر.ق2.9b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.2% to hit ر.ق0.91 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Qatar Navigation Q.P.S.C

After the latest results, the dual analysts covering Qatar Navigation Q.P.S.C are now predicting revenues of ر.ق3.09b in 2024. If met, this would reflect a credible 5.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 20% to ر.ق1.09. In the lead-up to this report, the analysts had been modelling revenues of ر.ق3.06b and earnings per share (EPS) of ر.ق1.11 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of ر.ق12.14, suggesting that the company has met expectations in its recent result.

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 Navigation Q.P.S.C's revenue growth is expected to slow, with the forecast 5.0% annualised growth rate until the end of 2024 being well below the historical 6.9% p.a. growth over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 2.9% per year. Factoring in the forecast slowdown in growth, it's pretty clear that Qatar Navigation Q.P.S.C is still expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. 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. We have analyst estimates for Qatar Navigation Q.P.S.C going out as far as 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Qatar Navigation Q.P.S.C , and understanding it should be part of your investment process.

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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.