Nahdi Medical Company Beat Revenue Forecasts By 6.2%: Here's What Analysts Are Forecasting Next

Nahdi Medical Company (TADAWUL:4164) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a workmanlike result, with revenues of ر.س2.5b coming in 6.2% ahead of expectations, and statutory earnings per share of ر.س6.87, 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 Nahdi Medical after the latest results.

Check out our latest analysis for Nahdi Medical

Taking into account the latest results, the most recent consensus for Nahdi Medical from seven analysts is for revenues of ر.س9.35b in 2024. If met, it would imply a modest 2.6% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be ر.س6.63, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of ر.س9.12b and earnings per share (EPS) of ر.س6.44 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Despite these upgrades,the analysts have not made any major changes to their price target of ر.س148, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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 Nahdi Medical analyst has a price target of ر.س176 per share, while the most pessimistic values it at ر.س125. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Nahdi Medical's growth to accelerate, with the forecast 5.3% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.7% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.5% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Nahdi Medical is expected to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Nahdi Medical's earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at ر.س148, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Nahdi Medical. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Nahdi Medical analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Nahdi Medical .

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.

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