Air Arabia PJSC Just Recorded A 8.3% Revenue Beat: Here's What Analysts Think

As you might know, Air Arabia PJSC (DFM:AIRARABIA) recently reported its quarterly numbers. It was a workmanlike result, with revenues of د.إ2.0b coming in 8.3% ahead of expectations, and statutory earnings per share of د.إ0.31, in line with analyst appraisals. 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 Air Arabia PJSC after the latest results.

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Taking into account the latest results, the current consensus from Air Arabia PJSC's four analysts is for revenues of د.إ7.98b in 2026. This would reflect a solid 12% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 19% to د.إ0.39. In the lead-up to this report, the analysts had been modelling revenues of د.إ8.00b and earnings per share (EPS) of د.إ0.35 in 2026. Although the revenue estimates have not really changed, we can see there's been a substantial gain in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

Check out our latest analysis for Air Arabia PJSC

There's been no major changes to the consensus price target of د.إ4.05, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Air Arabia PJSC at د.إ4.59 per share, while the most bearish prices it at د.إ3.75. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Air Arabia PJSC's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Air Arabia PJSC's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 9.2% growth on an annualised basis. This is compared to a historical growth rate of 24% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.1% annually. Even after the forecast slowdown in growth, it seems obvious that Air Arabia PJSC is also expected to grow faster 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 Air Arabia PJSC following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at د.إ4.05, 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 Air Arabia PJSC going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Air Arabia PJSC that you need to be mindful 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.