Investors in Aldrees Petroleum and Transport Services Company (TADAWUL:4200) had a strong week as its shares rose 2.2% to close at £75.50 following the release of its annual results. The result was broadly positive – although revenue of £9.1bn was in line with analysts’ forecasts, Aldrees Petroleum and Transport Services surprised by delivering a slightly higher statutory profit of £2.36 per share expectations to. Analysts typically update their forecasts with each earnings report, and we can judge from their estimates if their view of the business has changed or if there are new concerns to consider. We thought readers would find it interesting to see analysts’ latest post-earnings (statutory) forecasts for next year.

Check out our latest analysis for Aldrees Petroleum and Transport Services

Given the latest results, the current consensus of six analysts at Aldrees Petroleum and Transport Services is for revenues of £10.9bn in 2022, which would reflect a decent 20% increase in sales over the past 12 last months. Statutory earnings per share are expected to climb 15% to £2.72. Looking ahead to this report, analysts had modeled revenue of £10.9bn and earnings per share (EPS) of £2.98 in 2022. So it looks like there has been a slight drop general sentiment after the recent results – there were no major changes in earnings estimates, but analysts revised their earnings per share forecast slightly downward.

The consensus price target remained stable at ر.س85.47, with analysts apparently voting that their lower earnings guidance should not drive the stock price lower for the foreseeable future. It might also be instructive to look at the range of analysts’ estimates, to gauge how different the outlier opinions are from the mean. Currently, the most bullish analyst values ​​Aldrees Petroleum and Transport Services at ر.س95.00 per share, while the most bearish one values ​​it at ر.س71.00. Still, with such a narrow range of estimates, it suggests analysts have a pretty good idea of ​​what they think the company is worth.

Looking now at the bigger picture, one way to understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that the forecast calls for a continuation of historical trends for Aldrees Petroleum and Transport Services, as annualized revenue growth of 20% through the end of 2022 is roughly in line with annualized revenue growth 16% over the past five years. . Contrast that with the broader industry, which analysts estimate (in total) will see revenue grow by 3.3% annually. So it’s pretty clear that Aldrees Petroleum and Transport Services is expected to grow much faster than its industry.

The essential

The biggest concern is that analysts have cut their earnings per share estimates, suggesting headwinds may be coming for Aldrees Petroleum and Transport Services. Fortunately, there have been no major changes in the revenue forecast, with the business still expected to grow faster than the industry as a whole. There was no real change from the consensus price target, suggesting that the company’s intrinsic value has not undergone major changes with the latest estimates.

Continuing this thinking, we believe that the company’s long-term outlook is much more relevant than next year’s results. At Simply Wall St, we have a full range of analyst estimates for Aldrees Petroleum and Transport Services up to 2024, and you can view them for free on our platform here.

It should also be noted that we found 1 warning sign for Aldrees Petroleum and Transport Services that you need to consider.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.