CTF Services missed expectations on EPS but exceeded them on revenue. Analysts raised their outlook for next year, while the consensus price target was unchanged.
After CTF Services released its results, the share price rose 7.0% to close at HKD 8.40. Statutory earnings per share were HKD 0.52, 11% below expectations, while revenue was HKD 27.0 billion, 7.7% above expectations. Investors are assessing how to interpret the results.
Following the earnings announcement, analysts forecast next year's revenue at HKD 27.2 billion and EPS at HKD 0.62. The previous forecasts were HKD 26.2 billion and HKD 0.67, respectively, so the revenue forecast was raised while the EPS forecast was revised slightly lower.
The consensus price target was unchanged at HKD 10.77. The most bullish analyst has a target of HKD 11.50, while the most bearish has a target of HKD 10.40, indicating a relatively narrow range of forecasts.
Revenue contracted at an annual rate of approximately 4.0% over the past 5 years, while industry-wide growth is expected to be approximately 0.7% annually. The decline in revenue appears to be coming to an end, but CTF Services is expected to grow more slowly than the industry average.