Investors in ComfortDelGro Corporation Limited (SGX:C52) had a good week, as its shares rose 6.2% to close at S$1.55 following the release of its full-year results. It looks like the results were a bit of a negative overall. While revenues of S$3.9b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 9.6% to hit S$0.12 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for ComfortDelGro

Taking into account the latest results, ComfortDelGro's 13 analysts currently expect revenues in 2020 to be S$3.89b, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 2.2% to S$0.13. In the lead-up to this report, the analysts had been modelling revenues of S$3.89b and earnings per share (EPS) of S$0.13 in 2020. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at S$2.21, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values ComfortDelGro at S$2.70 per share, while the most bearish prices it at S$1.52. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would also point out that the forecast 0.4% revenue decline is better than the historical trend, which saw revenues shrink -1.9% annually over the past five years

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues 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.

With that in mind, we wouldn't be too quick to come to a conclusion on ComfortDelGro. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple ComfortDelGro analysts - going out to 2022, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for ComfortDelGro that you should be aware of.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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