The Saudi National Bank Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

The Saudi National Bank (TADAWUL:1180) just released its latest first-quarter results and things are looking bullish. The company beat expectations with revenues of ر.س9.6b arriving 4.2% ahead of forecasts. Statutory earnings per share (EPS) were ر.س0.96, 8.9% ahead of estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 1 warning sign about Saudi National Bank. View them for free.

After the latest results, the twelve analysts covering Saudi National Bank are now predicting revenues of ر.س39.3b in 2025. If met, this would reflect a solid 8.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 4.9% to ر.س3.78. In the lead-up to this report, the analysts had been modelling revenues of ر.س39.0b and earnings per share (EPS) of ر.س3.67 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for Saudi National Bank

There's been no major changes to the consensus price target of ر.س46.60, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Saudi National Bank analyst has a price target of ر.س53.50 per share, while the most pessimistic values it at ر.س39.80. This is a very narrow spread of estimates, implying either that Saudi National Bank is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's pretty clear that there is an expectation that Saudi National Bank's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 11% annually. Factoring in the forecast slowdown in growth, it looks like Saudi National Bank 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 Saudi National Bank following these results. 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.س46.60, 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 Saudi National Bank going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Saudi National Bank , and understanding this should be part of your investment process.

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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.