Emirates Integrated Telecommunications Company PJSC (DFM:DU) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year

It's been a good week for Emirates Integrated Telecommunications Company PJSC (DFM:DU) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.4% to د.إ6.17. Results were roughly in line with estimates, with revenues of د.إ3.6b and statutory earnings per share of د.إ0.37. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Emirates Integrated Telecommunications Company PJSC

Following last week's earnings report, Emirates Integrated Telecommunications Company PJSC's six analysts are forecasting 2024 revenues to be د.إ14.2b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 4.3% to د.إ0.44 in the same period. In the lead-up to this report, the analysts had been modelling revenues of د.إ14.1b and earnings per share (EPS) of د.إ0.43 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of د.إ7.20, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic Emirates Integrated Telecommunications Company PJSC analyst has a price target of د.إ8.28 per share, while the most pessimistic values it at د.إ6.30. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Emirates Integrated Telecommunications Company PJSC is an easy business to forecast or the the analysts are all using similar 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. It's clear from the latest estimates that Emirates Integrated Telecommunications Company PJSC's rate of growth is expected to accelerate meaningfully, with the forecast 3.2% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 2.6% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.9% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Emirates Integrated Telecommunications Company PJSC is expected to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Emirates Integrated Telecommunications Company PJSC following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at د.إ7.20, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that 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 Emirates Integrated Telecommunications Company PJSC going out to 2026, and you can see them free on our platform here..

Even so, be aware that Emirates Integrated Telecommunications Company PJSC is showing 1 warning sign in our investment analysis , 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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