Arabian Internet and Telecommunications Services Company (TADAWUL:7202) reported its latest annual results last week. It’s a good time for investors to see if the business is performing as expected. Sales were 11 billion yen, in line with expectations, but statutory earnings per share (EPS) were 993 million yen, below expectations, or 10.0% below expectations. Analysts typically update their forecasts with each earnings report, and we can use their forecasts to determine whether their view of the company has changed or if there are any new concerns to be aware of. . We’ve collected the latest statutory forecasts to see if the analysts have changed their earnings model following these results.
Check out the latest analysis on Arabian Internet and Telecommunications Services.
Following the latest results, 13 analysts covering Internet and Telecommunications Services in Arabia predict 2024 revenue of 124 billion euros. If achieved, this would reflect a significant 12% improvement in revenue compared to the previous 12 months. Earnings per share are expected to rise 22% to 12.24 euros. Ahead of the report, analysts had modeled sales of 125 billion euros and earnings per share (EPS) of 127.3 billion euros in 2024. Analysts seem to have become somewhat negative about this business. Given the slight drop in earnings per share numbers for next year, following the latest financial results.
The consensus price target remains unchanged at 348 euros, and analysts seem to believe that the downward revision of earnings estimates will not lead to a decline in the stock price in the near term. It may also be useful to examine the range of analysts’ estimates to assess how different the outlier’s opinion is from the average. Currently, the most bullish analyst values the Arabian Internet and Communication Services stock at €396 per share, while the most bearish values it at €278 per share. These price targets indicate that analysts have some differing views on the business, but the estimates suggest some are betting on great success or complete failure. There isn’t that much variation.
One way to get more context about these forecasts is to compare them to their past performance and to the performance of other companies in the same industry. Arabia’s internet and communications services revenue growth is expected to slow, with the expected annual growth rate of 12% to the end of 2024 being significantly lower than the historic annual growth rate of 16% over the past five years. I would like to emphasize that. For comparison, other companies in the industry that are covered by analysts are expected to grow their revenue at 8.9% per year. Therefore, it is clear that although Arabian Internet and Communication Services’ revenue growth is expected to be slower, it is still expected to grow faster than the industry itself.
conclusion
Most importantly, the analysts have revised down their earnings per share estimates, indicating a clear drop in sentiment following the results. Fortunately, they also reaffirmed their revenue numbers, suggesting they’re performing in line with expectations. Furthermore, our data suggests that revenue is expected to grow faster than the industry as a whole. The consensus price target is stable at €348, and the latest forecast is not significant enough to impact the price target.
Based on this idea, we think the long-term outlook for the business is far more relevant than next year’s earnings. We have published his forecasts to 2026 by several Arabian Internet and Telecommunications Services analysts and can be viewed for free on our platform here.
You can also see our analysis of Arabian Internet and Communication Services’ Board of Directors and CEO compensation and experience, and whether company insiders are buying shares.
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Check out our comprehensive analysis, including: Is Arabia Internet and Telecommunications Services potentially overvalued or undervalued? Fair value estimates, risks and caveats, dividends, insider trading, and financial health.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
