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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.