Stock Analysis

Bin Dawood Holding Company (TADAWUL:4161) Just Released Its First-Quarter Earnings: Here's What Analysts Think

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Bin Dawood Holding Company (TADAWUL:4161) shareholders are probably feeling a little disappointed, since its shares fell 4.7% to ر.س88.70 in the week after its latest quarterly results. Bin Dawood Holding reported in line with analyst predictions, delivering revenues of ر.س1.2b and statutory earnings per share of ر.س2.10, suggesting the business is executing well and in line with its plan. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Bin Dawood Holding

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SASE:4161 Earnings and Revenue Growth May 29th 2022

Taking into account the latest results, the current consensus from Bin Dawood Holding's seven analysts is for revenues of ر.س5.02b in 2022, which would reflect a meaningful 13% increase on its sales over the past 12 months. Per-share earnings are expected to shoot up 54% to ر.س3.29. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.س5.12b and earnings per share (EPS) of ر.س3.23 in 2022. 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 ر.س107, showing that the business is executing well and in line with expectations. 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. The most optimistic Bin Dawood Holding analyst has a price target of ر.س126 per share, while the most pessimistic values it at ر.س85.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bin Dawood Holding's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Bin Dawood Holding is forecast to grow faster in the future than it has in the past, with revenues expected to display 18% annualised growth until the end of 2022. If achieved, this would be a much better result than the 8.9% annual decline over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 7.6% per year. So it looks like Bin Dawood Holding is expected to grow faster than its competitors, at least for a while.

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 major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Bin Dawood Holding analysts - going out to 2024, 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 3 warning signs with Bin Dawood Holding , and understanding them should be part of your investment process.

Valuation is complex, but we're helping make it simple.

Find out whether BinDawood Holding is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.