Al-Dawaa Medical Services Company (TADAWUL:4163) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Al-Dawaa Medical Services Company (TADAWUL:4163) shareholders are probably feeling a little disappointed, since its shares fell 3.9% to ر.س85.50 in the week after its latest quarterly results. It was a workmanlike result, with revenues of ر.س1.6b coming in 4.1% ahead of expectations, and statutory earnings per share of ر.س3.87, in line with analyst appraisals. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Al-Dawaa Medical Services after the latest results.

View our latest analysis for Al-Dawaa Medical Services

Taking into account the latest results, the consensus forecast from Al-Dawaa Medical Services' six analysts is for revenues of ر.س6.66b in 2025. This reflects a satisfactory 7.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 24% to ر.س5.22. Before this earnings report, the analysts had been forecasting revenues of ر.س6.60b and earnings per share (EPS) of ر.س5.39 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at ر.س107, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Al-Dawaa Medical Services analyst has a price target of ر.س115 per share, while the most pessimistic values it at ر.س90.90. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 6.1% growth on an annualised basis. That is in line with its 7.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.8% annually. So although Al-Dawaa Medical Services is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Al-Dawaa Medical Services. 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.س107, 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. At Simply Wall St, we have a full range of analyst estimates for Al-Dawaa Medical Services going out to 2026, and you can see them free on our platform here..

It might also be worth considering whether Al-Dawaa Medical Services' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.