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Dorian LPG Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Simply Wall St ·  Aug 3 20:55

Last week, you might have seen that Dorian LPG Ltd. (NYSE:LPG) released its first-quarter result to the market. The early response was not positive, with shares down 8.1% to US$38.07 in the past week. The results were mixed; although revenues of US$114m fell 13% short of analyst estimates, statutory earnings per share (EPS) of US$1.25 beat expectations by 14%. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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NYSE:LPG Earnings and Revenue Growth August 3rd 2024

Taking into account the latest results, the twin analysts covering DorianG provided consensus estimates of US$472.0m revenue in 2025, which would reflect a definite 16% decline over the past 12 months. Statutory earnings per share are expected to plunge 34% to US$4.79 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$449.9m and earnings per share (EPS) of US$4.36 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 7.3% to US$47.75per share.

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 highlight that revenue is expected to reverse, with a forecast 21% annualised decline to the end of 2025. That is a notable change from historical growth of 16% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.5% per year. It's pretty clear that DorianG's revenues are expected to perform substantially worse than the wider 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 DorianG following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on DorianG. Long-term earnings power is much more important than next year's profits. We have analyst estimates for DorianG going out as far as 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for DorianG (1 is significant!) that we have uncovered.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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