Agthia Group PJSC Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Investors in Agthia Group PJSC (ADX:AGTHIA) had a good week, as its shares rose 2.2% to close at د.إ4.57 following the release of its first-quarter results. Agthia Group PJSC reported د.إ1.3b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of د.إ0.098 beat expectations, being 8.9% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Agthia Group PJSC after the latest results.

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Taking into account the latest results, the current consensus from Agthia Group PJSC's seven analysts is for revenues of د.إ5.37b in 2025. This would reflect a solid 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 43% to د.إ0.44. Before this earnings report, the analysts had been forecasting revenues of د.إ5.45b and earnings per share (EPS) of د.إ0.45 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 Agthia Group PJSC

The consensus price target fell 6.4% to د.إ7.09, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the quarterly results. 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. The most optimistic Agthia Group PJSC analyst has a price target of د.إ8.00 per share, while the most pessimistic values it at د.إ6.03. This is a very narrow spread of estimates, implying either that Agthia Group PJSC is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Agthia Group PJSC'shistorical trends, as the 18% annualised revenue growth to the end of 2025 is roughly in line with the 19% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.1% annually. So although Agthia Group PJSC is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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. 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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Agthia Group PJSC's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Agthia Group PJSC going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Agthia Group PJSC has 2 warning signs (and 1 which is potentially serious) we think 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.