The Salik Company P.J.S.C. (DFM:SALIK) Yearly Results Are Out And Analysts Have Published New Forecasts

Last week saw the newest full-year earnings release from Salik Company P.J.S.C. (DFM:SALIK), an important milestone in the company's journey to build a stronger business. It looks like the results were a bit of a negative overall. While revenues of د.إ2.1b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.5% to hit د.إ0.14 per share. 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.

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

After the latest results, the eight analysts covering Salik Company P.J.S.C are now predicting revenues of د.إ2.29b in 2024. If met, this would reflect a meaningful 8.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 2.1% to د.إ0.15. In the lead-up to this report, the analysts had been modelling revenues of د.إ2.29b and earnings per share (EPS) of د.إ0.14 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.إ3.73, 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. There are some variant perceptions on Salik Company P.J.S.C, with the most bullish analyst valuing it at د.إ4.10 and the most bearish at د.إ3.30 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. We would highlight that Salik Company P.J.S.C's revenue growth is expected to slow, with the forecast 8.8% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last three years. Compare this to the 174 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 9.7% per year. Factoring in the forecast slowdown in growth, it looks like Salik Company P.J.S.C is forecast to grow at about the same rate as 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 Salik Company P.J.S.C following these results. 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.إ3.73, 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. We have forecasts for Salik Company P.J.S.C going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Salik Company P.J.S.C that we have uncovered.

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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.