What Does The Future Hold For Emaar Development PJSC (DFM:EMAARDEV)? These Analysts Have Been Cutting Their Estimates

One thing we could say about the analysts on Emaar Development PJSC (DFM:EMAARDEV) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After the downgrade, the eight analysts covering Emaar Development PJSC are now predicting revenues of د.إ9.8b in 2023. If met, this would reflect a meaningful 12% improvement in sales compared to the last 12 months. Per-share earnings are expected to rise 5.2% to د.إ1.00. Before this latest update, the analysts had been forecasting revenues of د.إ12b and earnings per share (EPS) of د.إ0.99 in 2023. So there's been a clear change in analyst sentiment in the recent update, with the analysts making a substantial drop in revenues and reconfirming their earnings per share estimates.

See our latest analysis for Emaar Development PJSC

The consensus has reconfirmed its price target of د.إ7.24, showing that the analysts don't expect weaker sales expectationsthis year to have a material impact on Emaar Development PJSC's market value.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Emaar Development PJSC is forecast to grow faster in the future than it has in the past, with revenues expected to display 26% annualised growth until the end of 2023. If achieved, this would be a much better result than the 3.2% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 11% annually. Not only are Emaar Development PJSC's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Emaar Development PJSC after today.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Emaar Development PJSC going out to 2025, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.