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

Last week, you might have seen that Emirates Telecommunications Group Company PJSC (ADX:EAND) released its second-quarter result to the market. The early response was not positive, with shares down 2.4% to د.إ16.84 in the past week. It looks like a credible result overall - although revenues of د.إ14b were what the analysts expected, Emirates Telecommunications Group Company PJSC surprised by delivering a (statutory) profit of د.إ0.36 per share, an impressive 22% above what was forecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Emirates Telecommunications Group Company PJSC

Following last week's earnings report, Emirates Telecommunications Group Company PJSC's nine analysts are forecasting 2024 revenues to be د.إ56.5b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 7.7% to د.إ1.18 in the same period. In the lead-up to this report, the analysts had been modelling revenues of د.إ56.5b and earnings per share (EPS) of د.إ1.17 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at د.إ19.46. 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. There are some variant perceptions on Emirates Telecommunications Group Company PJSC, with the most bullish analyst valuing it at د.إ24.80 and the most bearish at د.إ17.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. The analysts are definitely expecting Emirates Telecommunications Group Company PJSC's growth to accelerate, with the forecast 4.0% annualised growth to the end of 2024 ranking favourably alongside historical growth of 0.9% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 4.0% per year. Emirates Telecommunications Group Company PJSC is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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 reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at د.إ19.46, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Emirates Telecommunications Group Company PJSC. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Emirates Telecommunications Group Company PJSC going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for Emirates Telecommunications Group Company PJSC 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.

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