Mobile Telecommunications Company Saudi Arabia Just Missed EPS By 14%: Here's What Analysts Think Will Happen Next
Mobile Telecommunications Company Saudi Arabia (TADAWUL:7030) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Statutory earnings per share of ر.س0.15 unfortunately missed expectations by 14%, although it was encouraging to see revenues of ر.س2.8b exceed expectations by 2.4%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the latest results, Mobile Telecommunications Company Saudi Arabia's seven analysts are now forecasting revenues of ر.س11.6b in 2027. This would be a reasonable 5.3% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be ر.س0.86, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of ر.س11.6b and earnings per share (EPS) of ر.س0.86 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 Mobile Telecommunications Company Saudi Arabia
The analysts reconfirmed their price target of ر.س11.09, showing that the business is executing well and in line with expectations. 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. The most optimistic Mobile Telecommunications Company Saudi Arabia analyst has a price target of ر.س14.00 per share, while the most pessimistic values it at ر.س8.50. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mobile Telecommunications Company Saudi Arabia's past performance and to peers in the same industry. We would highlight that Mobile Telecommunications Company Saudi Arabia's revenue growth is expected to slow, with the forecast 4.2% annualised growth rate until the end of 2027 being well below the historical 6.8% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.5% annually. Factoring in the forecast slowdown in growth, it seems obvious that Mobile Telecommunications Company Saudi Arabia is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ر.س11.09, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Mobile Telecommunications Company Saudi Arabia going out to 2028, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with Mobile Telecommunications Company Saudi Arabia .
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