First Abu Dhabi Bank P.J.S.C. Just Recorded A 10% Revenue Beat: Here's What Analysts Think

First Abu Dhabi Bank P.J.S.C. (ADX:FAB) just released its quarterly report and things are looking bullish. First Abu Dhabi Bank P.J.S.C beat revenue and statutory earnings per share (EPS) expectations, with sales hitting د.إ6.7b (10% ahead of estimates) and EPS reaching د.إ0.34 (a 6.2% beat). 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for First Abu Dhabi Bank P.J.S.C

Taking into account the latest results, the current consensus from First Abu Dhabi Bank P.J.S.C's ten analysts is for revenues of د.إ24.8b in 2023, which would reflect a huge 20% increase on its sales over the past 12 months. Per-share earnings are expected to expand 16% to د.إ1.23. In the lead-up to this report, the analysts had been modelling revenues of د.إ24.6b and earnings per share (EPS) of د.إ1.23 in 2023. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of د.إ14.58, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic First Abu Dhabi Bank P.J.S.C analyst has a price target of د.إ17.60 per share, while the most pessimistic values it at د.إ11.00. 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.

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 analysts are definitely expecting First Abu Dhabi Bank P.J.S.C's growth to accelerate, with the forecast 28% annualised growth to the end of 2023 ranking favourably alongside historical growth of 4.9% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect First Abu Dhabi Bank P.J.S.C to grow faster than the wider 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. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for First Abu Dhabi Bank P.J.S.C going out to 2025, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with First Abu Dhabi Bank P.J.S.C .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.