Analyst Estimates: Here's What Brokers Think Of Nahdi Medical Company (TADAWUL:4164) After Its First-Quarter Report

Last week, you might have seen that Nahdi Medical Company (TADAWUL:4164) released its first-quarter result to the market. The early response was not positive, with shares down 8.1% to ر.س162 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at ر.س2.1b, statutory earnings were in line with expectations, at ر.س6.83 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Nahdi Medical

Taking into account the latest results, the most recent consensus for Nahdi Medical from five analysts is for revenues of ر.س8.96b in 2023. If met, it would imply a credible 3.8% increase on its revenue over the past 12 months. Statutory per share are forecast to be ر.س6.91, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.س9.11b and earnings per share (EPS) of ر.س7.20 in 2023. 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.

It might be a surprise to learn that the consensus price target was broadly unchanged at ر.س197, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on Nahdi Medical, with the most bullish analyst valuing it at ر.س221 and the most bearish at ر.س148 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nahdi Medical's past performance and to peers in the same industry. It's clear from the latest estimates that Nahdi Medical's rate of growth is expected to accelerate meaningfully, with the forecast 5.1% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 3.6% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.1% per year. So it's clear that despite the acceleration in growth, Nahdi Medical is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

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 estimates - from multiple Nahdi Medical analysts - going out to 2025, and you can see them free on our platform here.

You still need to take note of risks, for example - Nahdi Medical has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.