Yahoo Finance ComfortDelGro Corporation Limited (SGX:C52) Just Released Its Annual Earnings: Here's What Analysts Think
ComfortDelGro Corporation Limited (SGX:C52) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. ComfortDelGro reported S$3.9b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of S$0.083 beat expectations, being 4.1% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for ComfortDelGro
Taking into account the latest results, the most recent consensus for ComfortDelGro from eight analysts is for revenues of S$4.04b in 2024. If met, it would imply a credible 4.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 19% to S$0.099. Yet prior to the latest earnings, the analysts had been anticipated revenues of S$3.99b and earnings per share (EPS) of S$0.098 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of S$1.64, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic ComfortDelGro analyst has a price target of S$1.80 per share, while the most pessimistic values it at S$1.56. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting ComfortDelGro is an easy business to forecast or the the analysts are all using similar assumptions.
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. For example, we noticed that ComfortDelGro's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 4.1% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 0.1% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.5% annually for the foreseeable future. So although ComfortDelGro's revenue growth is expected to improve, it is still expected to grow slower than the industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 forecasts for ComfortDelGro going out to 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for ComfortDelGro 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.
