Yahoo Finance Earnings Update: ComfortDelGro Corporation Limited (SGX:C52) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts
The yearly results for ComfortDelGro Corporation Limited (SGX:C52) were released last week, making it a good time to revisit its performance. The result was positive overall - although revenues of S$3.9b were in line with what the analysts predicted, ComfortDelGro surprised by delivering a statutory profit of S$0.083 per share, modestly greater than expected. 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. 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 current consensus from ComfortDelGro's eight analysts is for revenues of S$4.00b in 2024. This would reflect an okay 3.0% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 17% to S$0.097. Before this earnings report, the analysts had been forecasting revenues of S$4.02b and earnings per share (EPS) of S$0.094 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
There's been no major changes to the consensus price target of S$1.56, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic ComfortDelGro analyst has a price target of S$1.67 per share, while the most pessimistic values it at S$1.23. 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.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that ComfortDelGro's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.0% 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. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.7% per year. 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 important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards ComfortDelGro following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at S$1.56, 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 estimates - from multiple ComfortDelGro analysts - going out to 2026, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for ComfortDelGro you should know about.
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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.
