Earnings Update: Saudi Awwal Bank (TADAWUL:1060) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts
The quarterly results for Saudi Awwal Bank (TADAWUL:1060) were released last week, making it a good time to revisit its performance. It was a workmanlike result, with revenues of ر.س3.8b coming in 2.7% ahead of expectations, and statutory earnings per share of ر.س0.98, in line with analyst appraisals. 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.
Taking into account the latest results, the consensus forecast from Saudi Awwal Bank's eight analysts is for revenues of ر.س16.2b in 2027. This reflects a notable 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 9.0% to ر.س4.16. In the lead-up to this report, the analysts had been modelling revenues of ر.س16.3b and earnings per share (EPS) of ر.س4.18 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
Check out our latest analysis for Saudi Awwal Bank
The analysts reconfirmed their price target of ر.س41.14, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Saudi Awwal Bank, with the most bullish analyst valuing it at ر.س49.00 and the most bearish at ر.س36.50 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.9% annually. So it's pretty clear that Saudi Awwal Bank is forecast to grow substantially faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ر.س41.14, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Saudi Awwal Bank going out to 2028, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for Saudi Awwal Bank that you need to be mindful of.
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