Salik Company P.J.S.C. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Investors in Salik Company P.J.S.C. (DFM:SALIK) had a good week, as its shares rose 7.5% to close at د.إ5.29 following the release of its third-quarter results. The result was positive overall - although revenues of د.إ546m were in line with what the analysts predicted, Salik Company P.J.S.C surprised by delivering a statutory profit of د.إ0.04 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Salik Company P.J.S.C

After the latest results, the nine analysts covering Salik Company P.J.S.C are now predicting revenues of د.إ2.88b in 2025. If met, this would reflect a substantial 31% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 33% to د.إ0.20. Before this earnings report, the analysts had been forecasting revenues of د.إ2.88b and earnings per share (EPS) of د.إ0.20 in 2025. 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.

The analysts reconfirmed their price target of د.إ4.63, showing that the business is executing well and in line with expectations. 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 Salik Company P.J.S.C analyst has a price target of د.إ5.60 per share, while the most pessimistic values it at د.إ3.90. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Salik Company P.J.S.C's past performance and to peers in the same industry. It's clear from the latest estimates that Salik Company P.J.S.C's rate of growth is expected to accelerate meaningfully, with the forecast 24% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Salik Company P.J.S.C is expected to grow much faster than its 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. 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.إ4.63, 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. We have forecasts for Salik Company P.J.S.C going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Salik Company P.J.S.C .

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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.