Yahoo Finance Results: China Aviation Oil (Singapore) Corporation Ltd Beat Earnings Expectations And Analysts Now Have New Forecasts
Last week, you might have seen that China Aviation Oil (Singapore) Corporation Ltd (SGX:G92) released its full-year result to the market. The early response was not positive, with shares down 3.2% to S$0.91 in the past week. Revenues were US$14b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.068, an impressive 26% ahead of estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on China Aviation Oil (Singapore) after the latest results.
Check out our latest analysis for China Aviation Oil (Singapore)
After the latest results, the dual analysts covering China Aviation Oil (Singapore) are now predicting revenues of US$16.2b in 2024. If met, this would reflect a solid 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 21% to US$0.083. In the lead-up to this report, the analysts had been modelling revenues of US$20.1b and earnings per share (EPS) of US$0.09 in 2024. It looks like sentiment has fallen somewhat in the aftermath of these results, with a substantial drop in revenue estimates and a minor downgrade to earnings per share numbers as well.
The analysts made no major changes to their price target of S$1.08, suggesting the downgrades are not expected to have a long-term impact on China Aviation Oil (Singapore)'s valuation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that China Aviation Oil (Singapore) is forecast to grow faster in the future than it has in the past, with revenues expected to display 12% annualised growth until the end of 2024. If achieved, this would be a much better result than the 6.3% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to decline 1.8% per year. So it's pretty clear that China Aviation Oil (Singapore) is expected to grow faster than the wider 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. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit 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.
With that in mind, we wouldn't be too quick to come to a conclusion on China Aviation Oil (Singapore). Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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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.
