Qatar Electricity & Water Company Q.P.S.C. (DSM:QEWS) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

Qatar Electricity & Water Company Q.P.S.C. (DSM:QEWS) shareholders are probably feeling a little disappointed, since its shares fell 5.4% to ر.ق15.30 in the week after its latest quarterly results. Results look mixed - while revenue fell marginally short of analyst estimates at ر.ق687m, statutory earnings were in line with expectations, at ر.ق1.41 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Qatar Electricity & Water Company Q.P.S.C

Following the latest results, Qatar Electricity & Water Company Q.P.S.C's four analysts are now forecasting revenues of ر.ق3.03b in 2024. This would be a modest 5.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dip 4.4% to ر.ق1.30 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.ق3.03b and earnings per share (EPS) of ر.ق1.54 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

It might be a surprise to learn that the consensus price target was broadly unchanged at ر.ق21.12, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Qatar Electricity & Water Company Q.P.S.C, with the most bullish analyst valuing it at ر.ق26.00 and the most bearish at ر.ق17.70 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Qatar Electricity & Water Company Q.P.S.C shareholders.

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. The analysts are definitely expecting Qatar Electricity & Water Company Q.P.S.C's growth to accelerate, with the forecast 7.8% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.7% 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 4.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Qatar Electricity & Water Company Q.P.S.C is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ر.ق21.12, 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 Qatar Electricity & Water Company Q.P.S.C going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Qatar Electricity & Water Company Q.P.S.C 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.