Dubai Islamic Bank P.J.S.C. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Dubai Islamic Bank P.J.S.C. (DFM:DIB) 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. Revenues were د.إ3.2b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of د.إ0.26 were also better than expected, beating analyst predictions by 13%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the consensus forecast from Dubai Islamic Bank P.J.S.C's ten analysts is for revenues of د.إ13.6b in 2026. This reflects an okay 2.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dip 9.2% to د.إ1.00 in the same period. In the lead-up to this report, the analysts had been modelling revenues of د.إ13.5b and earnings per share (EPS) of د.إ0.97 in 2026. So the consensus seems to have become somewhat more optimistic on Dubai Islamic Bank P.J.S.C's earnings potential following these results.

View our latest analysis for Dubai Islamic Bank P.J.S.C

The consensus price target was unchanged at د.إ9.71, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. Currently, the most bullish analyst values Dubai Islamic Bank P.J.S.C at د.إ11.10 per share, while the most bearish prices it at د.إ8.30. This is a very narrow spread of estimates, implying either that Dubai Islamic Bank P.J.S.C is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Dubai Islamic Bank P.J.S.C's revenue growth is expected to slow, with the forecast 2.3% annualised growth rate until the end of 2026 being well below the historical 18% 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 7.5% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Dubai Islamic Bank P.J.S.C.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Dubai Islamic Bank P.J.S.C's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Dubai Islamic Bank P.J.S.C's revenue is expected to perform worse 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.

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 Dubai Islamic Bank P.J.S.C going out to 2027, and you can see them free on our platform here..

Even so, be aware that Dubai Islamic Bank P.J.S.C is showing 1 warning sign in our investment analysis , you should know about...

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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.