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Earnings Miss: Here's What Arabian Internet and Communication Services Company (TADAWUL:7202) Analysts Are Forecasting For This Year

Simply Wall St · 05/02 03:36

Arabian Internet and Communication Services Company (TADAWUL:7202) missed earnings with its latest first-quarter results, disappointing overly-optimistic forecasters. Results look to have been somewhat negative - revenue fell 7.9% short of analyst estimates at ر.س2.8b, and statutory earnings of ر.س3.03 per share missed forecasts by 6.9%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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SASE:7202 Earnings and Revenue Growth May 2nd 2025

Taking into account the latest results, the most recent consensus for Arabian Internet and Communication Services from eleven analysts is for revenues of ر.س13.1b in 2025. If met, it would imply a meaningful 8.3% increase on its revenue over the past 12 months. Statutory earnings per share are expected to dip 2.3% to ر.س13.17 in the same period. Before this earnings report, the analysts had been forecasting revenues of ر.س13.2b and earnings per share (EPS) of ر.س14.19 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for Arabian Internet and Communication Services

The consensus price target held steady at ر.س336, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Arabian Internet and Communication Services at ر.س400 per share, while the most bearish prices it at ر.س268. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Arabian Internet and Communication Services' revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 16% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.8% annually. So it's pretty clear that, while Arabian Internet and Communication Services' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 Arabian Internet and Communication Services. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Arabian Internet and Communication Services analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Arabian Internet and Communication Services' Board and CEO remuneration and experience, and whether company insiders have been buying stock.