Agthia Group PJSC Just Beat Revenue Estimates By 38%

Agthia Group PJSC (ADX:AGTHIA) shareholders are probably feeling a little disappointed, since its shares fell 3.8% to د.إ6.83 in the week after its latest second-quarter results. Revenue of د.إ1.1b beat expectations by an impressive 38%, while statutory earnings per share (EPS) were د.إ0.31, in line with estimates. 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. 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.

See our latest analysis for Agthia Group PJSC

Taking into account the latest results, the current consensus from Agthia Group PJSC's five analysts is for revenues of د.إ5.11b in 2024. This would reflect a credible 4.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 16% to د.إ0.43. Before this earnings report, the analysts had been forecasting revenues of د.إ5.00b and earnings per share (EPS) of د.إ0.43 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of د.إ6.89, implying that the uplift in revenue is not expected to greatly contribute to Agthia Group PJSC's valuation in the near term. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Agthia Group PJSC analyst has a price target of د.إ9.00 per share, while the most pessimistic values it at د.إ5.62. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. It's pretty clear that there is an expectation that Agthia Group PJSC's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 9.2% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.8% annually. So it's pretty clear that, while Agthia Group PJSC's revenue growth is expected to slow, it's expected to grow roughly in line with the 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. They also upgraded their revenue forecasts, although the latest estimates suggest that Agthia Group PJSC will grow in line with the overall industry. The consensus price target held steady at د.إ6.89, 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 Agthia Group PJSC going out to 2026, 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 Agthia Group PJSC 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.