Earnings Beat: Parkin Company P.J.S.C. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

A week ago, Parkin Company P.J.S.C. (DFM:PARKIN) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of د.إ269m, some 8.4% above estimates, and statutory earnings per share (EPS) coming in at د.إ0.05, 40% ahead of expectations. 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.

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Taking into account the latest results, the current consensus from Parkin Company P.J.S.C's seven analysts is for revenues of د.إ1.13b in 2025. This would reflect a decent 17% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 16% to د.إ0.18. Yet prior to the latest earnings, the analysts had been anticipated revenues of د.إ1.16b and earnings per share (EPS) of د.إ0.18 in 2025. 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.

View our latest analysis for Parkin Company P.J.S.C

The analysts reconfirmed their price target of د.إ4.84, 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. There are some variant perceptions on Parkin Company P.J.S.C, with the most bullish analyst valuing it at د.إ5.85 and the most bearish at د.إ3.50 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Parkin Company P.J.S.C'shistorical trends, as the 23% annualised revenue growth to the end of 2025 is roughly in line with the 22% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.9% annually. So it's pretty clear that Parkin Company P.J.S.C 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at د.إ4.84, 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. We have forecasts for Parkin Company P.J.S.C going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Parkin Company P.J.S.C you should be aware of.

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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.