Saudi Awwal Bank (TADAWUL:1060) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year

Investors in Saudi Awwal Bank (TADAWUL:1060) had a good week, as its shares rose 2.5% to close at ر.س34.45 following the release of its third-quarter results. It looks like the results were a bit of a negative overall. While revenues of ر.س3.5b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.8% to hit ر.س0.88 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Saudi Awwal Bank

Taking into account the latest results, the consensus forecast from Saudi Awwal Bank's eleven analysts is for revenues of ر.س15.1b in 2025. This reflects a decent 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 6.2% to ر.س3.92. In the lead-up to this report, the analysts had been modelling revenues of ر.س15.1b and earnings per share (EPS) of ر.س3.93 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of ر.س48.45, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Saudi Awwal Bank at ر.س55.00 per share, while the most bearish prices it at ر.س43.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Saudi Awwal Bank'shistorical trends, as the 12% annualised revenue growth to the end of 2025 is roughly in line with the 15% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. It's clear that while Saudi Awwal Bank's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ر.س48.45, 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 Saudi Awwal Bank going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Saudi Awwal Bank that you should be aware 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.